(Bloomberg) — US small-business owners dialed back hiring plans for a third-straight month in December and a smaller share had unfilled positions, as firms continued to face high labor costs and a lack of qualified candidates.
(Bloomberg) — US small-business owners dialed back hiring plans for a third-straight month in December and a smaller share had unfilled positions, as firms continued to face high labor costs and a lack of qualified candidates.
A net 17% of small companies planned to add workers, down 1 percentage point from the prior month and the fewest in almost two years, according to data out Thursday from the National Federation of Independent Business.
Some 41% of firms had open positions they couldn’t fill, down 3 points from November. While openings have fallen since matching a record of 51% last year, they’re still historically elevated.
“Small-business owners remain frustrated with the current labor situation,” Bill Dunkelberg, NFIB chief economist, said in a statement. “The trend in planned hiring eased slightly as labor quality and labor cost are two top issues for owners. Owners raised compensation again in December to attract and retain employees.”
Some 44% of small-business owners boosted compensation, an increase from a month earlier and a share that remains well above pre-pandemic levels. Labor quality was cited as a top labor market concern by 23% of small firms, up 2 points from November.
About 8% of respondents said labor costs are their single most important problem, down a point from the prior month.
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