Updated
Updated · RFD-TV · Jun 9
NFIB Says 14% of Small Firms Cite Record Labor Costs as Hiring Plans Hit 6-Year Low
Updated
Updated · RFD-TV · Jun 9

NFIB Says 14% of Small Firms Cite Record Labor Costs as Hiring Plans Hit 6-Year Low

2 articles · Updated · RFD-TV · Jun 9

Summary

  • May labor costs became the top problem for 14% of small-business owners, up 5 points from April and the highest reading in NFIB’s survey.
  • Hiring demand cooled even as payroll pressure persisted: unfilled job openings fell to 29%—the lowest since May 2020—while net hiring plans dropped to 9%, a six-year low.
  • 55% of owners were still hiring or trying to hire, but 46% said they got few or no qualified applicants, helping keep compensation pressure in place.
  • A net 31% raised pay in May and 18% plan more increases within three months, a squeeze NFIB says could curb investment across rural suppliers, truckers, processors and local services.

Insights

As rising wages squeeze rural businesses, can innovation and automation prevent the widespread collapse of local economies?
Beyond raising pay, what new business models can rural entrepreneurs adopt to thrive amidst record-high labor costs?
Is the rural labor crisis a wage problem, or a failure to successfully market the rural lifestyle to a new workforce?