NASHVILLE, TN (RFD NEWS) — Rural businesses and farm communities can feel a labor squeeze even when fewer employers are hiring.
NFIB reports labor costs reached a survey record in May, threatening the local employers, services, and suppliers that agriculture depends on.
In its nationwide small-business survey, NFIB found that 14 percent of owners named labor costs as their single most important problem, up 5 points from April. Job openings employers could not fill fell to 29 percent, the lowest since May 2020.
Hiring plans also dropped to a net 9 percent, a six-year low and below the historical average. Still, 55 percent of owners were hiring or trying to hire, and 46 percent reported few or no qualified applicants.
For rural communities, rising payroll pressures can affect equipment dealers, repair shops, processors, truckers, restaurants, and other businesses that serve producers. When margins narrow, hiring and local investment can slow.
Compensation pressure has not disappeared. A net 31 percent of owners raised pay in May, while a net 18 percent plan to increase pay over the next three months.
