WASHINGTON – The latest report from the National Federation of Independent Business (NFIB) reveals a slowdown in hiring among small businesses as the labor market exhibits signs of softening. This development carries significant implications for the architecture, engineering, construction, and manufacturing (AECM) sectors, which rely heavily on small businesses as both partners and suppliers.
What Happened
The NFIB's September jobs report highlights a decrease in hiring activity, with a seasonally adjusted 32% of small business owners reporting job openings they could not fill. This figure is down 3 percentage points from August, but it remains 8 points above the historical average. The Small Business Employment Index, which gauges the current state of the small business labor market, fell by 1.2 points to 100.6 in September, dipping below the 2025 average of 101.2 but still above the historical average of 100.
Bill Dunkelberg, NFIB's chief economist, noted the dual challenges of finding qualified workers and managing elevated operational costs, prompting businesses to exercise caution in their hiring decisions. The report shows that 51% of small business owners were hiring or trying to hire in September, down 5 points from August. Among these, 45% reported few or no qualified applicants for open positions. Specifically, 27% of businesses reported openings for skilled workers, a decrease of 4 points, while openings for unskilled labor rose by 3 points to 16%.
What This Means for Your Business
For AECM professionals, the slowdown presents both challenges and opportunities. With small businesses encountering difficulties in filling positions, larger firms may face disruptions in their supply chains and project timelines. However, this environment also creates opportunities for strategic partnerships with small businesses looking to stabilize their operations through collaboration.
Furthermore, the report indicates a seasonally adjusted net 17% of owners plan to create new jobs in the next three months, unchanged from August. This suggests that while hiring is slowing, there is still potential for growth and expansion, particularly for companies that can offer competitive compensation packages or training programs to enhance labor quality.
Compliance with evolving labor regulations, such as those related to the Cybersecurity Maturity Model Certification (CMMC) and National Institute of Standards and Technology (NIST), remains crucial. Companies that can navigate these regulatory landscapes effectively will position themselves favorably in securing government contracts and funding opportunities.
What US Operators Should Watch
Decision-makers should monitor key federal deadlines and procurement windows closely. The labor market's current state means that any shifts in policy or funding allocations could significantly impact hiring and operational strategies. Additionally, understanding the timelines for CMMC audits and NIST compliance will be vital for maintaining competitive positioning in the government contracting space.
As small businesses adjust their hiring strategies, AECM firms must remain agile, leveraging opportunities to strengthen their workforce and supply chains while mitigating potential risks associated with labor shortages.
Source: https://businessjournaldaily.com/report-small-business-hiring-slows-in-september/. Read the original story ->
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