Small business owners are showing caution in their hiring practices due to economic uncertainty, according to recent data. This hesitance is considered an economic warning sign as the outlook for small businesses has declined.
In April, 34% of small businesses reported job openings they could not fill, marking a decrease of six points from March and reaching the lowest percentage in three years. Meanwhile, 56% of small businesses hired or attempted to hire in March, which is an increase of three points compared to March. Of those hiring, 85% reported encountering few or no qualified job applicants, a slight decrease from the previous month.
Additionally, 13% of small business owners plan to create new jobs within the next three months, reflecting a one-point increase from March. However, only 33% of small businesses raised wages in April—a drop of five points from March—and just 17% intend to raise compensation over the next three months. This figure represents a two-point decline from March and is the lowest percentage recorded in three years.
The demand for skilled workers also decreased slightly; 29% of small businesses have openings for skilled workers—down four points from March—while 13% continue to have openings for unskilled workers, a figure unchanged over the past three months.
In the construction sector specifically, 57% of small businesses report having at least one job opening they cannot fill—an increase of one point since March.
For more detailed insights into this data, refer to the National Federation of Independent Business (NFIB) April Jobs Report published on May 1.
