The National Federation of Independent Business (NFIB) released its latest monthly Jobs Report on March 7, showing a weakening in job creation among small businesses in February, reaching the highest level of unfilled positions since last August.
The findings are significant for Hawaii’s small business community, as they highlight ongoing challenges with hiring and increasing operational costs. Michael Iosua, state director for NFIB in Hawaii, said two key actions are needed to prevent setbacks in economic recovery: “One is Congress must prevent the 20% Small Business Deduction from expiring at the end of the year. The other is the Hawaii Legislature should support small businesses in the state by reducing the number of laws that cause additional operating costs to businesses. It’s sad when we see a cherished local business close its doors due to the cost of doing business here, but few stop to think of the ever-increasing regulations and financial burdens that are put on Hawaii’s businesses that contributed to that result.”
According to NFIB Chief Economist Bill Dunkelberg, “Over half of Main Street firms reported hiring or trying to hire in February, but with little success. Meanwhile, consistent compensation increases continue to put pressure on small business owners as they look for qualified workers to fill their many open positions.”
The report found that 38% (seasonally adjusted) of small business owners had job openings they could not fill in February—up three points from January and marking the highest reading since August 2024. Job openings were most prevalent in retail, construction, and manufacturing sectors and lowest in agriculture and finance. Labor quality was cited as a top operating problem by 19% of owners, while labor costs rose three points from January to 12%, just below a record high reached in December 2021.
A net 33% of owners reported raising compensation during February (unchanged from January), while a net 18% plan further increases over the next three months—a slight decrease from January.
NFIB has represented America’s small and independent business owners for more than eight decades across all states. The organization continues its advocacy efforts both nationally and locally.
