Small businesses are feeling the squeeze in today’s economy. The National Federation of Independent Business recently reported that their small business optimism index dropped in January, although it still sits above average. Interestingly, uncertainty levels among business owners reached one of their highest points ever.
One major hurdle for small businesses is hiring. In fact, over a third of those surveyed in January had unfilled job openings.
Holly Wade, the executive director at the NFIB Research Center, emphasizes that small businesses genuinely want to hire. However, the problem lies in finding qualified applicants.
According to the survey, 90% of small business owners looking to hire reported they had “few or no” suitable candidates. Federal data shows that the number of open jobs matches the number of unemployed workers, yet certain industries, like construction, struggle to find skilled labor.
Bruce Jovaag, who owns Norse Construction in St. Louis, shared his frustrations. His small crew specializes in kitchen and bathroom remodels, but his waitlist is about four months long. He lamented, “I would love to have a shorter wait time, but I just can’t.”
Finding specialized workers, such as carpenters, has become nearly impossible for Jovaag. He resorts to hiring subcontractors, but even those efforts have their challenges. “I interviewed someone recently, but his salary demands were just too high. I can’t afford health insurance and vacation pay right from the start,” he explained.
According to Nich Tremper, a senior economist at Gusto, this shortage in skilled trades has been a long-standing issue that particularly affects small companies. “Small businesses struggle to compete with larger firms on pay, which puts them at a disadvantage,” he noted.
On top of that, shifting policies around tariffs and immigration are adding to the uncertainty, making it even harder for small businesses to plan ahead.
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hiring,job openings,skilled workers,small business optimism,small businesses
