Small business owners in Hawaii continue to face challenges filling job openings, according to the latest monthly Jobs Report from the National Federation of Independent Business (NFIB). The report found that 33% of small business owners nationwide reported having positions they could not fill in July. This figure is down three percentage points from June and marks the lowest level since December 2020, but it remains above the historical average of 25%.
Michael Iosua, NFIB Hawaii State Director, commented on the findings: “Nice to see a slight drop in the percentage of unfilled job opening, however, the fact that one in three small businesses owners are still struggling with finding qualified employees is not good. The July 4 signing of the law making the 20% Small Business Deduction a permanent part of the tax code was welcomed news, because it will give Main Street entrepreneurs more time to make longer-term hiring and other business decision.”
The NFIB Jobs Report surveys its member small-business owners across the country. Most members employ between one and nine people and report annual gross sales around $500,000.
Bill Dunkelberg, NFIB Chief Economist, added: “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.”
According to highlights from the report:
– Job openings were most common in construction, wholesale, and transportation industries; finance and agriculture had fewer open positions.
– A net 14% of owners plan to create new jobs within three months—an increase from June and above the historical average.
– A net 27% reported raising compensation in July (down six points from June), while a net 17% plan to raise pay over the next three months.
– Labor costs as a top concern dropped slightly compared to June.
NFIB has represented small businesses for over eight decades at both state and national levels as a nonprofit association dedicated solely to independent business interests.
For ongoing updates about Hawaii’s small-business climate, visit www.nfib.com or follow NFIB Hawaii on X @NFIB_HI.
