Labor Shortages Tighten As Rural Hiring Plans Surge

The National Federation of Independent Business says 27 percent of owners named labor quality or availability their biggest problem, up eight points from June.

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.

Farm-Level Takeaway: Tight labor supplies could push farm and rural business payroll costs higher.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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