Rushmore State News

NFIB's August jobs report revealed that 40% of small business owners reported job vacancies that remained unfilled in August, a rise of two points from the previous month. The percentage of business owners identifying labor quality as their primary operational issue also increased by two points to 21%, the highest figure since January this year.

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

NFIB South Dakota State Director Jason Glodt 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."

The report notes that 62% of small business owners either hired or tried to hire in August, increasing by five points from July. Among those, 56% (90% of those hiring) reported encountering few or no qualified applicants, with 31% finding few qualified applicants and 25% finding none at all.

In terms of specific job vacancies, 36% of owners reported openings for skilled workers, an increase of four points, while 15% reported openings for unskilled labor, a slight drop. Job openings in construction rose by five points from July, and over half (60%) remained unfilled. The highest job vacancy rates were in the transportation, construction, and manufacturing sectors, with the lowest in agriculture and finance.

Looking ahead, a net 13% of owners plan to create new jobs in the upcoming three months, a decrease of two points from July. Labor cost concerns remained unchanged as the single most significant issue for business owners at 9%, below the 13% peak reached in December 2021.

Additionally, 33% of small business owners reported increasing compensation in August on a seasonally adjusted basis, consistent with July and marking the lowest level since April 2021. A net 20% are planning to raise compensation in the next three months, showing a two-point increase from July.

The full NFIB Jobs Report can be accessed for further details.