The labor force participation rate is slowly rising but small businesses continue to have a hard time filling their open positions, Bill Dunkelberg, NFIB chief economist, said in a statement. The number of job openings continues to exceed the number of unemployed workers which has produced a tight labor market and added pressure on wage levels.
A quarter of small firms said they are planning to raise worker pay in the next three months. Thats below the record 32% seen in each of the final three months of 2021, but still historically high. Firms of all sizes have raised wages to try to attract and retain employees in the hyper-competitive job market, but its often tougher for small firms to do so.
Two-thirds of owners reported hiring or trying to hire in May, up eight points from April, but of those respondents, 92% reported few or no qualified applicants for the positions they were trying to fill.
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