Rushmore State News

NFIB's August jobs report indicates that 40% of small business owners reported unfilled job openings, a two-point increase from July. Labor quality concerns have risen to 21%, marking the highest level since January.

"Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions," said NFIB Chief Economist Bill Dunkelberg. "Owners have grown understandably frustrated as attempts to fill their workforce repeatedly stall and cost pressures continue to rise."

Jason Glodt, NFIB South Dakota State Director, commented on the situation: "As we navigate the challenges faced by South Dakota small businesses, it is clear that the need for qualified workers remains high. We must focus on enhancing workforce development efforts to equip our residents with the necessary skills, helping our local businesses succeed and grow in our communities."

In August, 62% of small business owners were hiring or attempting to hire, an increase of five points from July. Among them, 56% reported few or no qualified applicants for their positions. Specifically, 31% noted few qualified candidates while 25% found none.

Openings for skilled workers rose by four points to 36%, whereas openings for unskilled labor decreased by one point to 15%. Job vacancies in construction increased by five points from July, with over half (60%) unable to fill these roles. The transportation, construction, and manufacturing sectors had the highest job openings, while agriculture and finance sectors had the lowest.

A net 13% of owners plan to create new jobs in the next three months, down two points from July. Labor costs remain a significant issue but unchanged at 9%, below December 2021's peak of 13%.

A net 33% of small business owners raised compensation in August, consistent with July figures and marking the lowest level since April 2021. Looking ahead, a net 20% plan compensation increases in the next three months, up two points from July.

The full NFIB Jobs Report is available online.