Survey Reveals Small Business Owners Facing Job Filling Challenges

DALLAS – A survey of thousands of the nation’s small businesses found that filling job openings remains a challenge.

Some owners say finding quality labor is the biggest problem.

Small Business Hiring Demands

Big picture view:

The National Federation of Independent Business Owners is a nonpartisan organization that supports businesses. Its June survey of small business owners found hiring is still a headache. 

“36% of all our small business owners reported having job openings that they could not fill. So that’s up two points from May. So, we’re seeing an increased struggle in the labor market, and we’re really hoping things get better,” said Sarah Horn, the assistant Texas state director of the NFIB.

Additionally, 86% of small business owners reported few or no qualified applicants for their open positions.

Local perspective:

Louis Rainey, the owner of Duncanville’s Pelican House restaurant, said that despite raising wages by 30% since 2019, offering healthcare, and providing free meals to employees, good ones are hard to come by.

“We have 16 interviews for next week. Maybe two of them will be halfway qualified,” he said. “You get a ton of applications, but you don’t get qualified workers that you are looking for in this industry.”

But it’s not just his industry. Small business owners in the manufacturing, construction, and transportation industries are also reporting hiring challenges.

Horn said the Texas Legislature passed a bill this session that will help bring skilled labor from other states to Texas to help address the labor shortage.

The Texas Restaurant Association and the National Restaurant Association have also asked President Donald Trump to provide some type of immigration relief for workers with no criminal record who pose no threat to national security.

“We have people who are throughout our economy, especially in Texas, and they’re law-abiding. They’re paying taxes. They’re contributing, filling critical roles that are going unfilled otherwise,” said Kelsey Erickson Streufert with the Texas Restaurant Association.

And voters will decide in November on a measure that would raise the business property tax exemption from $2,500 to $125,000. Horn said if approved, that would bring big tax relief to small businesses.

Meanwhile, Rainey is trying to recruit people who are willing to do the work. 

“We got to do what we got to do and just serve our folks. That’s all,” he said.

June Jobs Report

Dig deeper:

Overall, the American labor market is proving resilient once again in the face of economic uncertainty. 

The June jobs report released by the U.S. Department of Labor was better than expected. Employers added 147,000 new jobs.

It’s a modest rise from the 144,000 in May but still exceeds expectations.

The unemployment rate also fell to 4.1% from 4.2%.

As the economy stays solid, the Federal Reserve is likely to wait longer to cut interest rates.