The month of May reported record-high job openings among small businesses, according to the National Federation of Independent Businesses.
According to the NFIB’s May report, 44% of small business owners reported they struggled with filling open positions. Though that number is down by 1% since April, it still remains 20% higher than the 49-year average rating.
“The labor force participation rate remains below pre-COVID levels, which is contributing to the shortage of workers available to fill open positions,” NFIB Chief Economist Bill Dunkelberg said. “Small businesses have a record high level of job openings currently and are working hard to fill their open positions.”
The majority of small business owners reported that labor quality was a leading issue, with labor costs being the second most reported. Overall, 63% of small businesses tried to hire new employees in May. 24% reported that there were no qualified applicants.
Arizona NFIB Director Chad Heinrich said the state’s unemployment system needs more safeguards.
“Considering the record high number of job openings and the chronically low number of people participating in the labor market, it’s unfortunate that Governor [Katie] Hobbs vetoed House Bill 2108,” he said. “This bill, sponsored by Representative David Livingston, would have tightened up the integrity of the unemployment insurance system to encourage the unemployed, who continue to receive benefits, to actively seek work.”
A net 41% of owners reported raising compensation, as a means of attracting more applicants.
Republished with the permission of The Center Square.
