Small businesses across New York continue to face a tight and uneven labor market, according to the December jobs report from the National Federation of Independent Business, with hiring challenges persisting even as compensation pressures increase.
The report found that 33 percent of small business owners nationwide reported job openings they could not fill in December, a figure that remained unchanged from November and well above the historical average of 24 percent. In New York, the situation mirrors the national trend, particularly for skilled positions, which remain the hardest to staff.
Twenty-eight percent of small business owners reported openings for skilled workers, while 10 percent said they were seeking unskilled labor. Although overall hiring activity cooled slightly, more than half of owners—53 percent—said they were hiring or attempting to hire in December.
Among those trying to fill positions, the lack of qualified applicants remains a major obstacle. Forty-eight percent of owners reported few or no qualified candidates, with nearly a quarter saying they could not find any suitable applicants at all.
“Main Street businesses are ready to hire, but many small firms still can’t fill available positions,” said NFIB Assistant State Director Molly Dillman. She noted that the tight labor market continues to make it difficult for New York businesses to meet customer demand and maintain service levels.
Looking ahead, hiring plans appear to be slowing. A net 17 percent of owners said they plan to create new jobs in the next three months, down slightly from November. At the same time, compensation pressures are clearly rising. A seasonally adjusted net 31 percent of owners reported raising pay in December, a five-point jump from the prior month, while 24 percent expect to raise compensation again in the near term.
Labor quality remains the top concern for many owners, cited by 19 percent as their single most important problem. Labor costs also increased as a concern, underscoring the financial strain facing small firms already operating with tight margins.
The report paints a mixed picture for New York’s small business economy: steady demand for workers, limited supply of qualified applicants, and rising wages that may challenge future growth and expansion plans.