According to the latest National Federation of Independent Business Jobs Report for August 2025, small businesses are grappling with unfilled job openings despite signs of economic growth. While 32% of small business owners report having unfilled positions, this marks a slight decrease compared to July, reflecting ongoing challenges in finding qualified candidates. The report highlights that 53% of small business owners attempted to hire in August, yet 43% of those actively recruiting encountered a shortage of qualified applicants. The construction, manufacturing, and transportation sectors are experiencing the most job openings, contrasting with the finance and wholesale industries, which are lagging behind. Optimism remains, as 15% of small business owners plan to expand their workforce in the next three months, amid rising compensation pressures, with 29% having already increased wages in August.
According to newly revised data from the Bureau of Labor Statistics, the U.S. economy has created nearly one million fewer jobs over the past year than previously estimated. The total employment figures were adjusted downward by 991,000 jobs, representing a 0.6% decline, with significant losses occurring in technology-related fields. In fact, the information industry, which encompasses internet companies and software publishing, saw a reduction of 67,000 jobs, or 2.3%, highlighting the impact of artificial intelligence on employment.
Janco’s latest data confirms that the IT job market is sharply shrinking, with the unemployment rate hitting 4.5%, which is about 118,000 IT professionals unemployed. Over the past 24 months, the industry has shed more than 179,000 jobs, marking the third year in a row of decline. Despite this, there are over 200,000 open positions, mainly in small to medium-sized businesses as they prepare for new initiatives involving artificial intelligence, blockchain, and omni-commerce. M. Victor Janulaitis, CEO of Janco, mentioned that although large tech companies are laying off workers, demand for IT skills remains strong among smaller firms. The changing environment highlights a need for expertise in AI and data engineering, with employers increasingly looking for candidates who can combine advanced technical skills with business insight and creativity.
Why do we care?
Small businesses can’t find workers. Thirty-two percent have unfilled jobs, especially in construction and manufacturing. Meanwhile, the Bureau of Labor Statistics just revised job growth down by a million—tech jobs included. And Janco says the IT unemployment rate is up to 4.5%, with almost 120,000 IT pros out of work.
But here’s the rub: MSPs aren’t swimming in talent. Big tech layoffs don’t equal easy hiring for service providers. The skills MSPs need—AI, data, business-savvy engineers—aren’t the ones flooding the market. That means you’re still competing for scarce talent.
And your clients? They’re struggling to find labor, too, which changes where they put dollars. They’ll look to tech to plug gaps, not just grow headcount. That’s where automation and advisory services come in—you’re not just filling IT seats, you’re helping clients offset labor gaps with smarter processes and tech.
You’ve got to rethink your talent strategy—more training, more automation—and frame your value as solving clients’ labor shortages with tech, not just selling IT hours.