Small-business owners are slowing down on raising compensation, according to the latest July Jobs Report by the National Federation of Independent Business (NFIB). The report indicates a decrease in plans to increase pay, with hiring intentions remaining steady.
“Fewer small business owners are planning to raise compensation in the coming months, and plans to hire remain stable,” said NFIB Chief Economist Bill Dunkelberg. He added that July marked the second month of net gains in employment on Main Street, but many firms still have numerous open positions.
Tray Abney, NFIB’s Nevada state director, commented on the challenges faced by business owners: “Costs are still up, the availability of a qualified workforce is still down, and fewer small business job-creators are planning to raise employee compensation. Business owners need predictability and stability, which are difficult to find in this election year.”
The report highlights that a seasonally adjusted net 33% of small-business owners raised compensation in July, a decrease from previous months. Additionally, 18% plan to increase pay over the next three months.
Hiring activity also saw a decline; 57% of small-business owners were hiring or attempting to hire in July. A significant number reported difficulties finding qualified applicants for open positions.
The construction sector experienced an increase in job openings compared to June. However, over half of these openings remain unfilled. Construction, transportation, and retail sectors have the highest job vacancies, while agriculture and finance sectors have the lowest.
Data for this report was collected from a survey conducted by NFIB’s Research Foundation involving 10,000 small-business owners/members in July 2024.
NFIB has been advocating for small businesses across America for 80 years and continues its efforts today. More information can be found at nfib.com.
