The big picture: Small business hiring activity decreased in September, with fewer owners reporting job openings, signaling a softening labor market.

Why it matters: This trend indicates increased caution among small employers, impacting overall labor market dynamics and talent acquisition strategies.

Between the lines:

• 32% of owners reported unfilled job openings, down 3 points from August.
• 45% of owners hiring reported few or no qualified applicants.
• Labor quality/availability is the top operating problem for 26% of owners.

Staffing & HR impact: Staffing firms may see reduced demand from small businesses, while HR leaders will continue to grapple with skills gaps despite a cooling market.

The bottom line: While hiring slows, the underlying challenge of finding qualified talent remains a significant hurdle for small businesses.