Silver State Times

Small-business owners in the United States are easing back on the trend of raising wages as they face ongoing challenges in the job market. According to the July Jobs Report from the National Federation of Independent Business (NFIB), a slower pace of compensation increases is being observed.

Bill Dunkelberg, NFIB Chief Economist, highlighted, "Fewer small business owners are planning to raise compensation in the coming months, and plans to hire remain stable. July marks the second month of net gains in employment on Main Street, and the number of firms with open positions remains exceptionally high."

Tray Abney, NFIB’s Nevada state director, added, "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. We look forward to our elected officials getting off the campaign trail and back to work on important issues, such as reducing credit card transaction fees and stopping a massive small business tax increase."

The data reveals that 33% of small business owners reported raising compensation in July, a significant decline from previous months and the lowest figure recorded since April 2021. Furthermore, only 18% plan to increase compensation in the next three months.

Hiring efforts also showed some decline; 57% of small business owners reported hiring or attempting to hire last month, with a reported shortage of qualified applicants persisting. Job openings remain particularly high in the construction, transportation, and retail sectors, while agriculture and finance show lower demand.

These insights are drawn from the NFIB's ongoing surveys of their members, which provide valuable snapshots of small-business economic trends. The organization has been monitoring these trends since 1974 through quarterly and monthly surveys.

NFIB continues to be a prominent advocate for small businesses across the nation. As they confront ongoing economic uncertainties, the organization is calling for policy actions to address issues affecting small-business vitality.