Labor market woes: US small businesses scale back hiring plans

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The NFIB's latest small business jobs report found owners are scaling back their hiring plans in the next three months to the lowest level since May 2020 despite a tight labor market.

U.S. small businesses' hiring plans fell last month to the lowest level since the early stages of the COVID pandemic even as the labor market remains tight, according to the latest jobs report from the National Federation of Independent Business . The NFIB's report found that just 11% of small businesses surveyed in March planned to create new jobs in the next three months, down one point from February and the lowest level since May 2020.

The industry with the highest percentage of small businesses reporting job openings was transportation with 77%, up from 53% a year ago. It was followed by services and construction, which each had 44% of small businesses report job openings. Construction job openings were down nine points from last month and 29 percentage points from a year ago, and almost half of small businesses in the sector reported having a job opening they can't fill.

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