The latest Jobs Report from the National Federation of Independent Business (NFIB) shows a troubling trend that could affect your job prospects. As small businesses struggle with hiring, this could mean more competition for available jobs.

Job Openings on the Rise but Hard to Fill

According to the NFIB’s June Jobs Report, the Small Business Employment Index remained stable at 100.2, just slightly below May’s reading of 100.3. This marks the fourth consecutive month where the index has failed to increase. While it sits higher than the historical average of 100.0, it is below the 2025 average of 101.2.

In June, 32% of small business owners reported they had job openings they couldn’t fill, marking an increase of three points from the previous month. Of these openings, 27% were for skilled labor, while 12% were for unskilled labor, which also saw a small rise. Bill Dunkelberg, the Chief Economist of NFIB, noted that despite more businesses looking to hire, many are struggling to find qualified candidates.

Chad Heinrich, NFIB State Director, emphasized that these challenges reflect the experiences of small business owners in Arizona. Many members have job openings, but they are having difficulty finding applicants with the necessary experience and qualifications.

Hiring Plans Show Mixed Signals

Despite the challenges, there is a glimmer of hope. A seasonally adjusted net 11% of small business owners plan to create new jobs in the next three months. This is an increase of two points from May and aligns with the historical average. Overall, 62% of owners reported efforts to hire in June, which is a significant increase of seven points from the previous month.

However, the struggle for qualified applicants persists. A staggering 51% of owners who are hiring reported having few or no qualified candidates. Specifically, 27% noted there were few qualified applicants, while 24% stated there were none at all. This shows a notable rise in the challenges small business owners face in hiring skilled workers.

Labor Quality Takes Center Stage

Labor quality and availability have become pressing issues for small business owners. In June, 19% of respondents identified this as their most significant problem, representing a six-point increase compared to May. The situation is crucial because businesses thrive when they can find the right people to fill key roles.

Interestingly, while concerns about labor quality are prominent, worries about labor costs have seen a decline. Only 8% of business owners reported labor costs as their primary concern, down six points from May’s record high. This indicates that while finding workers is becoming a more pressing issue, the cost of labor may not be as prohibitive at this time.

In terms of compensation, there was a drop in both adherence to and plans for raising wages. Only a net 28% of business owners reported increasing pay, which is the lowest figure recorded this year. Moreover, net plans to raise compensation in the near future dropped by one point, indicating a cautious approach to increasing pay for employees.

What this means for you

If you’re job hunting, be mindful that many companies are actively seeking candidates but are struggling to find qualified applicants. Use this opportunity to enhance your skills and experience. If you ever need to review employment contracts or related documents, legal-document-to-plain-english-translator/”>AI legalese decoder can help you decode the fine print in seconds.

Source: https://www.nfib.com/news/press-release/nfib-jobs-report-small-business-job-openings-rebound-6/