NFIB’s August jobs report shows small business job openings have dropped to their lowest level since July 2020, signaling a cooling trend in the labor market.
The survey found that 32 percent of small business owners reported job openings they could not fill in August, down one point from July. Openings for skilled workers stood at 28 percent, down one point, while openings for unskilled labor rose to 13 percent, up one point.
“While the economy appears to be doing well, small businesses are scaling back on job openings,” said Chief Economist Bill Dunkelberg. “Small business owners with job openings are still looking for qualified applicants, many citing labor quality as their single most important problem.”
NFIB State Director Rosemary Elebash said the national numbers mirror conditions in Alabama. “Small businesses might not be hiring as many workers, but they are still hiring, and it’s still difficult for many of them to find people with the skills and experience they’re looking for,” she said.
Overall, 53 percent of small business owners reported hiring or trying to hire in August, down four points from July. Among those, 43 percent reported few or no qualified applicants, a decline of five points. Twenty-six percent said they found few qualified applicants, while 17 percent said they found none.
In August, 21 percent of small business owners cited labor quality as their top concern, unchanged from July. Labor costs fell slightly as a top concern, down one point to eight percent.
A seasonally adjusted net 15 percent of owners plan to create new jobs in the next three months, marking the third consecutive monthly increase. Meanwhile, a net 29 percent reported raising compensation in August, up two points from July. Another 20 percent plan to raise compensation in the next three months, up three points.
Job Openings by Industry
Job openings were most concentrated in construction, manufacturing and transportation, and lowest in wholesale and finance. Nearly half of small businesses in the construction industry reported unfilled job openings in August, though that figure has declined sharply from last year.
Industry – Percent with Job Openings
- Construction: 49 percent in August 2025, compared to 60 percent in August 2024
- Manufacturing: 41 percent in August 2025, compared to 47 percent in August 2024
- Transportation: 41 percent in August 2025, compared to 66 percent in August 2024
- Services: 37 percent in August 2025, compared to 35 percent in August 2024
- Professional services: 33 percent in August 2025, compared to 44 percent in August 2024
- Agriculture: 25 percent in August 2025, compared to 28 percent in August 2024
- Retail: 25 percent in August 2025, compared to 39 percent in August 2024
- Wholesale: 20 percent in August 2025, compared to 38 percent in August 2024
- Finance: 18 percent in August 2025, compared to 28 percent in August 2024
The year-over-year comparison shows job openings down significantly across nearly every sector except services, where demand for workers ticked up slightly. The steepest declines were seen in transportation and construction, both of which are still struggling to attract qualified labor but at lower levels than a year ago.
Despite signs of resilience, NFIB data underscores an ongoing challenge for small businesses: finding qualified workers remains one of the greatest hurdles to growth.
