DES MOINES, IOWA (October 3, 2024) — The National Federation of Independent Business (NFIB)’s September jobs report found that 34% (seasonally adjusted) of small-business owners reported job openings they could not fill in September, down six points from August and the lowest reading since January 2021.
“Overall, the job market appears to be softening,” said NFIB Chief Economist Bill Dunkelberg. “Fewer small firms have openings they can’t fill as we head into fall. But many still report trouble finding qualified applicants and plans to increase compensation is once again on the rise.”
"The drop in job openings to a three-year low is concerning for Iowa's small businesses,” said NFIB Iowa State Director Matt Everson. “While this may ease some hiring pressures, it also signals small businesses are tightening their belts as costs continue to rise. We're keeping a close eye on how this trend might impacts Iowa's robust agricultural and manufacturing sectors."
Overall, 59% of small-business owners reported hiring or trying to hire in September, down three points from August. Fifty-two percent (90% of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill. Thirty percent of owners reported few qualified applicants for their open positions and 22% reported none.
Thirty percent have openings for skilled workers (down six points) and 14% have openings for unskilled labor (down one point).
Job openings in construction were down seven points from August and about half of them (53%) have a job opening they can’t fill. Job openings were the highest in the construction, transportation, and manufacturing sectors, and the lowest in the agriculture and finance sectors.
A seasonally-adjusted net 15% of owners plan to create new jobs in the next three months, up two points from August.
The percent of small-business owners reporting labor quality as their top small-business operating problem fell four points from August to 17%. Labor costs reported as the single most important problem for business owners was unchanged at 9%, four points below the highest reading of 13% reached in December 2021.
Seasonally adjusted, a net 32% of small business owners reported raising compensation in September, down one point from August and the lowest reading since April 2021. A net 23% (seasonally adjusted) plan to raise compensation in the next three months, up three points from August.
Click here to view the entire NFIB Jobs Report.
For eighty years, NFIB has been advocating on behalf of America’s small- and independent-business owners, both in Washington DC and in all fifty state capitals. NFIB is non-profit, non-partisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.
