Detroit City Wire

The latest jobs report from the Bureau of Labor Statistics and the National Federation of Independent Business (NFIB) indicates that wage inflation may have reached its peak. This development is favorable for small business owners who have faced challenges in hiring and retaining employees due to escalating wages. The alleviation of wage pressures could be beneficial for America's small business sector.

According to the June small business data report, 42% of small businesses reported unfilled job openings in May, a slight increase from April and significantly above the 49-year average of 23%. Among those hiring, 85% reported few or no qualified applicants, which is a decrease from April's figures.

Additionally, 15% of small business owners plan to create new jobs within the next three months, marking a rise from April and reaching the highest level for 2024. In terms of compensation, 37% of businesses raised wages in May, slightly down from April. Furthermore, only 18% plan to raise compensation in the coming three months, representing a three-year low.

The report also highlighted that 37% of small businesses are seeking skilled workers (an increase from April), while openings for unskilled labor decreased to 14%. In the construction industry specifically, 54% of businesses reported job openings they could not fill.

Further details on this data can be found in the full report published on June 6, 2024.