Last Frontier News

Despite an improvement in small business optimism, unfilled job openings continue to challenge Main Street enterprises. The National Federation of Independent Business (NFIB) released its latest monthly Jobs Report, indicating that 35% of small business owners reported job openings they could not fill in January, unchanged from December.

The report is a national overview and does not provide state-specific data. NFIB members typically employ about ten people and report annual gross sales of approximately $500,000. On February 11, the NFIB will release its Small Business Optimism Index.

Bill Dunkelberg, NFIB Chief Economist, commented on the situation: “Small business owners are certainly feeling hopeful about the direction of the economy. However, employment remains a top concern as Main Street owners continue to face challenges in finding qualified employees to fill their open positions.”

According to the report's highlights:

- Fifty-two percent of small business owners reported hiring or attempting to hire in January, down three points from December.

- Forty-seven percent of those hiring or trying to hire found few or no qualified applicants for their positions.

- Twenty-nine percent have openings for skilled workers (unchanged), while 10% have openings for unskilled labor (down three points).

- A net 18% plan to create new jobs in the next three months, down one point from December.

- Labor quality as a top operating problem decreased by one point from December to 18%. Labor costs as the most significant issue fell two points from December to 9%, four points below the highest reading of 13% reached in December 2021.

- A net 33% reported raising compensation in January, up four points from December’s lowest reading since March 2021. Meanwhile, a net 20% plan to raise compensation over the next three months, down four points from December.

For more information and updates on Alaska's small-business news visit www.nfib.com and follow them on X at @NFIB_AK.

NFIB has been advocating for America's small businesses for over eight decades across Washington D.C. and all state capitals. As a nonprofit and nonpartisan association founded in 1943, it remains dedicated exclusively to small and independent businesses.