MNI BRIEF: Half of Small U.S. Firms Unable to Fill Jobs - NFIB

A record number of small businesses said they could not fill open jobs in May, with 93% of owners saying hiring or trying to hire reported few or no "qualified" applications for the positions they were trying to fill, according to the National Federation of Independent Business.

Some 48% of small businesses said job openings went unfilled in May, the NFIB reports, up from 44% reported in April and the fourth consecutive month of record-high readings for unfilled job openings. The NFIB, the nation's largest small-business lobbying group, also showed 34% of owners reported raising compensation, the highest level in the past 12 months, and a net 22% of owners plan to raise compensation in the next three months, up two points from April.

"Small business owners are struggling at record levels trying to get workers back in open positions," said Bill Dunkelberg, NFIB's chief economist. "Ultimately, higher labor costs are being passed on to customers in higher selling prices." Fed economists have told MNI that increased automation, a shift to e-commerce and decline in business travel are among the many forces reshuffling the types of jobs and skills in demand after the Covid-19 pandemic and could lead to a rocky labor recovery.