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The National Federation of Independent Business (NFIB) released its October jobs report, revealing that 35 percent of small business owners nationwide reported unfilled job openings, up one point from September’s record low since January 2021. Labor quality concerns remain prominent, with 20 percent of owners naming it as their primary operating problem, a three-point increase from last month.
“On Main Street, the job market remains challenging,” stated NFIB Chief Economist Bill Dunkelberg. “Although the labor market appears to be softening overall, small business owners reported little success filling their plentiful vacancies in October.”
While specific figures for Alabama are unavailable, NFIB State Director Rosemary Elebash noted the ongoing struggle for small businesses across the state. “Small businesses want to add workers, but they can’t find enough people with the necessary training and experience. Workforce development will be one of NFIB’s top priorities when the legislature returns to Montgomery in 2025,” she said.
In October, 53 percent of small business owners reported actively hiring or attempting to hire, a six-point drop from September. Among them, 46 percent— or 87 percent of those hiring— reported few or no qualified applicants. Breaking it down further, 25 percent cited a lack of qualified applicants, while 21 percent reported receiving no qualified applicants at all.
The job openings were notably concentrated in sectors like construction, transportation, and wholesale, whereas agriculture and finance saw the fewest openings. However, the construction sector saw a four-point drop from last month, with 49 percent still unable to fill open positions.
For skilled workers, 31 percent of owners reported job openings, up one point from last month, while 14 percent reported openings for unskilled labor, remaining unchanged. Over the next three months, a net 15 percent of owners plan to create new jobs, showing no change from September.
Labor costs as the single most significant business issue decreased to 8 percent, a point down from last month and well below the December 2021 high of 13 percent. Compensation increases slowed, with a seasonally adjusted net 31 percent of owners reporting raised wages in October—marking the lowest figure since April 2021. Looking ahead, 23 percent plan to increase compensation in the coming three months, holding steady from September.
