NASHVILLE, TENN. (RFD NEWS) — Small-business labor conditions tightened sharply in July, adding pressure for farms and rural employers already struggling to find qualified workers. The National Federation of Independent Business says 27 percent of owners named labor quality or availability their biggest problem, up eight points from June.
Hiring plans jumped nine points to a net 20 percent, the highest since October 2022. Unfilled job openings rose to 36 percent, while 51 percent of employers trying to hire reported few or no qualified applicants.
Agriculture faces the same squeeze. Farmers reported shortages of skilled operators and seasonal workers, with some relying heavily on the federal H-2A program as wages, benefits, overtime, and other employment costs rise.
Compensation pressures are also building. A net 31 percent of owners raised pay during July, while 19 percent plan additional increases during the next three months.
The employment index rose to 102.1 after four consecutive monthly declines. Rural businesses will be watching whether stronger hiring plans translate into actual workers or simply intensify competition for a limited labor pool.
