Small business owners in California and across the nation continue to face challenges filling job openings, according to the latest monthly Jobs Report from the National Federation of Independent Business (NFIB). The report indicates that 33% of small business owners nationwide had job openings they could not fill in July, a decrease of three points from June and the lowest level since December 2020. However, this figure remains above the historical average of 25%.
John Kabateck, NFIB California State Director, commented on the situation: “It’s tough to resist the temptation to label it the new normal, given how long Main Street entrepreneurs have struggled to fill their job openings, but no difficulty occurs in a vacuum. State and federal policies have an impact on a small business owner’s calculation whether to hire or even remain in business at all. Big businesses get all sorts of accommodations, such as film tax credits, but small businesses? Forget about it. Witness the fate of Senate Bill 84, which would have provided small businesses with a short period of time to correct an ADA violation. The shakedown lawsuit industry proved too strong for the State Assembly to resist, failing to give it one hearing after the State Senate passed it 34-2. Shameful of the Assembly leadership.”
The NFIB Jobs Report is based on a national survey of its members—typically businesses employing between one and nine people with gross sales around $500,000 annually.
Bill Dunkelberg, NFIB Chief Economist, noted ongoing labor market issues: “The challenge of finding qualified workers is easing overall but still remained significant for many small business owners in July. The easing labor market pressures are also reflected in fewer firms raising compensation.”
Additional findings from the report show that job openings were most prevalent in construction, wholesale, and transportation industries while finance and agriculture reported fewer vacancies. A net 14% (seasonally adjusted) plan to create new jobs within three months—slightly higher than June’s numbers and above historic averages. Compensation increases were reported by a net 27% (seasonally adjusted), down six points from June; plans for future raises also declined slightly.
Labor costs cited as the single most important problem dropped marginally from June to July.
For more information on trends affecting California’s small-business community or updates from NFIB California visit www.nfib.com.
