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we Recruitment plans for small and medium enterprises Even though the labor market remains tight, the number of employees fell last month to its lowest level since the early stages of the coronavirus pandemic, according to the latest jobs report from the National Federation of Independent Business (NFIB).
According to the NFIB report, only 11% of small businesses surveyed in March planned to: create new jobs Over the next three months, it will fall by 1 point from February to its lowest level since May 2020. The decline puts the index below its historical average of 11.8%, and the NFIB said in its report that “job creation plans are currently below where they should be.” This is typical in a strong growing economy. ”
More than half (56%) of small business owners reported hiring or attempting to hire in March, unchanged from February, with NFIB reporting that “hiring activity has declined from peak levels. However, it remains strong.”
“Main Street job openings are now consistent with pre-pandemic levels,” NFIB Chief Economist Bill Dunkelberg said in a press release. “Despite the slowing in job openings, the small business labor market remains tight, and business owners continue to compete to retain and recruit employees.”
What to expect from the March employment report
The National Federation of Independent Business found that small businesses scaled back their hiring plans last month. (Reuters/Brian Snyder/Reuters Photo)
Due to competition in the labor market, a net 38% of small businesses reported compensation increases, an increase of 3 percentage points from February and the lowest level since May 2021.
Almost a third of small business owners, or 31%, have openings for skilled workers and 14% have openings for unskilled workers.
Private sector job growth exceeded expectations in March
The majority of small business owners reported finding few or no qualified candidates. (Photographer: Daniel Acker/Bloomberg via Getty Images/Getty Images)
The industry with the highest percentage of small businesses reporting job openings was transportation, at 77%, up from 53% a year ago. This is followed by the services and construction industries, each with 44% of small businesses reporting job openings.
construction industry jobs Nearly half of small and medium-sized businesses in this sector reported having vacancies that they were unable to fill, a decrease of 9 points from last month and 29 points from a year ago.
The U.S. is short on manufacturing workers, threatening global competitiveness
The three-month employment plan for small and medium-sized enterprises was at its lowest level since May 2020. (image/image)
An overwhelming 86% of small business owners who are hiring or looking to hire reported finding few or no qualified job applicants.
The NFIB report in the ADP National Employment Report released earlier this week showed that U.S. businesses beat expectations in March despite high interest rates and uncertainty about when inflation will sufficiently subside. The announcement was made after the company showed employment. federal reserve To lower interest rates.
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The report comes ahead of Friday’s jobs report from the Bureau of Labor Statistics and is another data point for Fed policymakers to consider as they weigh the possibility of cutting interest rates this year.
Reuters contributed to this report.
