Small-Business Employment Growth Slows: Report from American Drycleaner

According to the monthly jobs report prepared by the National Federation of Independent Business (NFIB), 37% of all owners reported job openings they could not fill in the current period, which is down two points from January and the lowest reading since January 2021. Small business owners continue to struggle with finding qualified workers, as the percentage of small business owners reporting labor quality as their top small business operating problem decreased five points from January to 16%, the lowest reading since April 2020.

Despite this challenge, employment activity has lessened somewhat as it becomes easier for owners to find qualified workers. Labor demand remains strong, with a seasonally adjusted net 12% planning to create new jobs in the next three months, down two points from January and the lowest level since May 2020. However, job openings among small businesses decreased in February to pre-pandemic levels according to NFIB Chief Economist Bill Dunkelberg.

Labor costs reported as the single most important problem for business owners increased one point to 11%, only two points below the highest reading of 13% reached in December 2021. Overall, 56% of owners reported hiring or trying to hire in February, up one point from January. Of those hiring or trying to hire, 91% reported few or no qualified applicants for the positions they were trying to fill, up two points from January.

Seasonally adjusted, a net 35% reported raising compensation, down four points from January and the lowest reading since May 2021. A net 19% plan to raise compensation in the next three months, down seven points from January and the lowest since March 2021. The report also mentions that

By Aiden Johnson

As a content writer at newspoip.com, I have a passion for crafting engaging and informative articles that captivate readers. With a keen eye for detail and a knack for storytelling, I strive to deliver content that not only informs but also entertains. My goal is to create compelling narratives that resonate with our audience and keep them coming back for more. Whether I'm delving into the latest news topics or exploring in-depth features, I am dedicated to producing high-quality content that informs, inspires, and sparks curiosity.

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