---
title: "New Report Cites Labor Quality As Top Problem For Small Business Operators"
url: https://burnaze.com/article/15d944d5-f73c-4cd2-b9c4-76676a7fb714
source: "Franchising.com"
original_url: https://www.franchising.com/articles/new_report_cites_labor_quality_as_top_problem_for_small_business_operators.html
author: "Multi-Unit Franchisee"
category: "General"
topics: ["Operations"]
published: 2020-12-09T07:00:00.000Z
modified: 2026-11-01T02:32:13.640Z
image: https://imgs.franchising.com/art/articles/5685_plate.jpg
---

# New Report Cites Labor Quality As Top Problem For Small Business Operators

**TL;DR:** A new report by the NFIB states that labor quality is a top problem for small business operators, with 53% of owners reporting hiring or trying to hire in November. The report also found that 24% of owners cited labor quality as their top business problem, exceeding the percentages selecting taxes, regulations, and weak sales.

*By Multi-Unit Franchisee, originally published in Franchising.com on 2020-12-09. [Read the original](https://www.franchising.com/articles/new_report_cites_labor_quality_as_top_problem_for_small_business_operators.html).*

## Story

Small business owners are looking to hire but are having trouble finding qualified workers in a tight labor market, says a new report by the NFIB. According to the report, small businesses reported a historically high level of job openings last month. Overall, 53% reported hiring or trying to hire in November, down 2 points from the previous month.

A seasonally adjusted net 21% of owners are planning to create new jobs in the next 3 months, up 3 points from October. “Small businesses are doing their best to end the year on a good note, but the economic recovery remains uneven with some industries near full recovery and others still struggling,” said NFIB Chief Economist Bill Dunkelberg. “Finding qualified workers for open positions has only gotten worse as the pandemic caused an even tighter labor market.

A surge in the labor force participation rate would be welcome news to small employers.” Other findings from the report: Thirty-four percent (seasonally adjusted) of owners reported job openings they could not fill in the current period, up 1 point from October’s reading. Eighty-nine percent of those owners trying to hire reported few or no “qualified” applicants for the positions they were trying to fill.

Twenty-seven percent of owners reported few qualified applications for their positions and 20% reported none. Twenty-nine percent of owners have openings for skilled labor and 13% have openings for unskilled labor. Six percent of owners cited labor costs as their top business problem (down 2 points) but 24% said that labor quality was their top business problem (up 2 points), exceeding the percentages selecting taxes, regulations, and weak sales as their top problem.

Firms increased employment by 0.16 workers per firm on average over the past few months, an increase of 0.06 workers per firm compared to October’s reading.

Up 1 point, 12% reported increasing employment an average of 2.6 workers per firm and 14% reported reducing employment an average of 3.1 workers per firm (seasonally adjusted).

## Entities

- Franchising.com (publication)
- General (sector)
- Multi-Unit Franchisee (person)
- small business (topic)
- hiring (topic)
- job openings (topic)
- labor quality (topic)

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Originally reported by Multi-Unit Franchisee, Franchising.com (https://www.franchising.com/articles/new_report_cites_labor_quality_as_top_problem_for_small_business_operators.html). Summarized by Burnaze (https://burnaze.com/article/15d944d5-f73c-4cd2-b9c4-76676a7fb714).