The share of US small businesses with unfilled positions this month dropped to the lowest level since February 2021 and fewer owners said they raised worker compensation, the National Federation of Independent Business said.
(Bloomberg) — The share of US small businesses with unfilled positions this month dropped to the lowest level since February 2021 and fewer owners said they raised worker compensation, the National Federation of Independent Business said.
The net percentage of small firms boosting worker pay fell 2 percentage points to 36%, matching the smallest since May 2021, data from the NFIB showed Thursday. That’s down markedly from a record high of 50% at the start of last year. At the same time, 26% indicated plans to raise compensation in the next three months, the largest share this year.
The drop in the share of businesses with open positions to 40% suggests labor-market conditions are easing, though vacancies continue to hold above pre-pandemic levels. Overall, 59% of owners reported hiring or trying to hire this month, a decline of 2 percentage points.
“Even as openings fell on Main Street, owners are actively working to retain current employees and attract qualified applicants,” Bill Dunkelberg, NFIB’s chief economist, said in a statement.
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