The net percentage of small firms boosting worker pay fell 2 percentage points to 36%, matching the smallest since May 2021, data from the NFIB showed Thursday. That’s down markedly from a record high of 50% at the start of last year. At the same time, 26% indicated plans to raise compensation in the next three months, the largest share this year.
The drop in the share of businesses with open positions to 40% suggests labor-market conditions are easing, though vacancies continue to hold above pre-pandemic levels. Overall, 59% of owners reported hiring or trying to hire this month, a decline of 2 percentage points. “Even as openings fell on Main Street, owners are actively working to retain current employees and attract qualified applicants,” Bill Dunkelberg, NFIB’s chief economist, said in a statement.