The National Federation of Independent Business (NFIB) reported on Nov. 1 that small business owners continue to face difficulties in hiring qualified employees, despite offering higher compensation. The latest Jobs Report, released just days before the upcoming election, indicates little change in the labor market for small businesses.
This issue is significant as it highlights ongoing workforce shortages that could influence policy decisions by those elected to the Hawaii State Legislature. Persistent hiring challenges may affect economic growth and the ability of small businesses to operate efficiently.
Bill Dunkelberg, NFIB Chief Economist, said, “On Main Street, the job market remains challenging. Although the labor market appears to be softening overall, small business owners reported little success filling their plentiful vacancies in October.”
According to the report, 35% of small business owners had job openings they could not fill in October, a slight increase from September’s lowest reading since January 2021. Job openings were most common in construction, transportation, and wholesale sectors but were less prevalent in agriculture and finance. In construction specifically, job openings decreased by four points from last month with 49% reporting unfilled positions. A seasonally adjusted net 15% of owners plan to create new jobs over the next three months—unchanged from September—while a net 31% reported raising compensation in October, down one point from September and marking the lowest level since April 2021. Plans to raise compensation also remained steady at a net 23%.
NFIB has been advocating for America’s small and independent business owners for over eighty years across all fifty states and Washington D.C., focusing exclusively on supporting these enterprises since its founding in 1943.
As policymakers prepare for next year’s legislative session following Tuesday’s election, these findings may shape discussions around workforce development and support for local businesses.
