“The labor force participation rate is slowly rising but small businesses continue to have a hard time filling their open positions,” said NFIB Chief Economist Bill Dunkelberg. “The number of job openings continues to exceed the number of unemployed workers which has produced a tight labor market and added pressure on wage levels.”
Overall, 67% of owners reported hiring or trying to hire in May, up eight points from April. Ninety-two percent of those owners hiring or trying to hire reported few or no qualified applicants for the positions they were trying to fill. Thirty-three percent of owners reported few qualified applicants for their open positions and 28% reported none.
Seasonally adjusted, a net 49% of owners reported raising compensation, up three points from April and one point below the 48-year record high set in January. A net 25% of owners plan to raise compensation in the next three months.
Forty-two percent of owners have openings for skilled workers and 25% have openings for unskilled labor. Sixty-five percent of the job openings in construction are for skilled workers, up 11 points. Sixty-nine percent of construction firms reported few or no qualified applicants, up five points, clearly one of the tightest domestic labor markets in recent history.
A seasonally adjusted net 26% of owners are planning to create new jobs in the next three months, up six points from April and close to a 48-year record high. Hopefully, they will succeed and help close the gap between current employment and the 2020 previous high level.
