Grand Canyon Times

NFIB's December jobs report indicates a slight easing in labor costs for small businesses, with 35% of owners reporting unfilled job openings, a decrease from November. Compensation increases also saw a decline, with 29% of owners raising pay in December, marking the lowest level since March 2021.

Bill Dunkelberg, NFIB Chief Economist, stated that "finding qualified workers remained a major headwind for stronger job growth on Main Street in December," while noting that compensation increases have softened but remained solid as the year ended.

Chad Heinrich, NFIB State Director, emphasized the difficulty of hiring qualified workers and urged lawmakers to consider reducing regulations to help small businesses offer competitive wages.

Looking ahead, 24% of small business owners plan to raise compensation in the next three months. Labor costs remain a significant concern for 11% of business owners. The quality of labor is reported as the top problem by 19% of owners.

The report shows that 55% of small business owners were hiring or attempting to hire in December. However, nearly half reported few or no qualified applicants. Job openings were prevalent in transportation, construction, and manufacturing sectors but lower in agriculture and finance.

For skilled workers, 29% of positions remain open. In construction specifically, job openings decreased significantly compared to last month and last year.