The National Federation of Independent Business (NFIB) released its monthly Jobs Report, showing that in March, 32% of small business owners nationwide reported job openings they could not fill, a decrease of one point from February. The report was discussed by NFIB Washington State Director Patrick Connor on April 3.
The continued difficulty in filling job openings is significant for both local and national economies. Persistent hiring challenges can impact the ability of small businesses to grow and provide services.
Connor said, “NFIB’s latest Jobs Report does not come as much of a surprise, although it was interesting to see that finding qualified employees – let alone any employees – remains an intractable problem, as it has for a decade now. Washington state’s job outlook remains even gloomier, with no net job gains forecast in the near term. The imposition of a new income tax on certain small-business owners all but guarantees more job losses on Main Street, unless voters overturn it.”
According to the NFIB Jobs Report, unfilled job openings remain above the historical average of 24%. Twenty-seven percent have openings for skilled workers (down one point), while 12% have openings for unskilled labor (up two points). A seasonally adjusted net 12% plan to create new jobs in the next three months—unchanged from February—and overall hiring or attempts to hire fell by two points compared to last month. Labor quality continues to be cited as the most important problem by 15% of owners.
The Small Business Employment Index—a measure integrating employment changes and compensation—fell by 1.9 points to 101.6 but stays above both last year’s average and historical levels. Bill Dunkelberg, NFIB Chief Economist, said: “While small businesses are not hiring extensively, they continue to face difficulties related to labor cost and quality. Despite the current stagnant employment growth, economic conditions could change rapidly.”
Founded over eighty years ago and representing independent business owners across America since its founding in 1943, NFIB says it continues its advocacy efforts at both federal and state levels.
