Small business job openings stay elevated in September

Small business owners continue to face persistent labor shortages, with 32% reporting unfilled job openings in September, according to data from the Bureau of Labor Statistics (BLS) and the NFIB’s latest jobs report. The figure is unchanged from August and marks one of the highest levels since July 2020. Skilled positions remain difficult to fill, with 28% of owners seeking qualified workers, while 13% reported openings for unskilled labor.

Despite the shortage, small business hiring intentions remain strong. A seasonally adjusted net 16% of owners plan to create new jobs over the next three months, up slightly from August and representing the fourth consecutive monthly increase. Overall, 58% of owners reported hiring or attempting to hire in September, a 5-point increase from the previous month.

Qualified applicants remain scarce. Among those actively hiring, 88% reported few or no qualified candidates for their open positions, up 7 points from August. Twenty-nine percent of owners reported few qualified applicants, while 21% said none applied. These labor gaps continue to challenge small businesses’ growth and operational efficiency.

Labor quality and costs are shaping the small business landscape. Eighteen percent of owners cited labor quality as their top concern, down slightly from August. Meanwhile, labor costs have emerged as a growing issue, with 11% of owners reporting it as their most pressing challenge, up 3 points from the previous month.

Compensation trends reflect the ongoing struggle to attract and retain talent. A net 31% of owners raised wages in September, up 2 points from August, while 19% plan to increase pay over the next three months, a slight decline from the previous month. These adjustments highlight the balancing act small business owners face in maintaining competitiveness while managing costs.

While a recession appears unlikely, labor shortages, rising costs, and recruitment challenges are shaping hiring decisions and influencing small business strategies as owners navigate a competitive employment environment.