Grand Canyon Times

The latest jobs report from the National Federation of Independent Business (NFIB) indicates that 35% of small business owners reported unfilled job openings in January, a figure unchanged from December. The sectors most affected by these vacancies include transportation, construction, and manufacturing, while agriculture and finance have the fewest openings. In particular, job openings in construction increased by four points compared to last month but decreased by two points from the previous year.

Bill Dunkelberg, NFIB Chief Economist, stated, “Small business owners are certainly feeling hopeful about the direction of the economy. However, employment remains a top concern as Main Street owners continue to face challenges in finding qualified employees to fill their open positions.”

Chad Heinrich, NFIB State Director, highlighted the ongoing difficulties faced by small businesses: “Unfortunately, finding qualified applicants remains a serious obstacle for small business owners. These challenges underscore the importance of making it easier for Main Street Arizonans to own and operate their businesses. That means simplifying our tax code, cutting regulations, and rejecting costly mandates.”

In January, 52% of small business owners were hiring or attempting to hire staff, marking a three-point decrease from December. Among those hiring or trying to hire, 47% reported having few or no qualified applicants for their available positions. Specifically, 24% noted few qualified candidates and 23% reported none at all.

The report also shows that 29% of businesses have openings for skilled workers with no change from previous data; however, there is a three-point drop in openings for unskilled laborers now at 10%.

Looking ahead, a net 18% of owners plan to create new jobs within the next three months—a slight decline of one point from December's figures.

Labor quality issues as a primary operational problem decreased slightly by one point to 18%, while concerns over labor costs fell two points to 9%. This figure is just four points shy of its peak level recorded in December 2021.

In terms of compensation adjustments during January, seasonally adjusted data reveals that a net 33% of small business owners increased wages—an uptick of four points since December's lowest reading since March 2021. Meanwhile, plans to raise compensation over the next quarter dropped by four points with only a net 20% anticipating increases.

For further details on this report from NFIB regarding job trends among small businesses across various sectors click here.