Main Street Job Creation Slowing Down
Small businesses across America are having a hard time finding good workers. A new report from the National Federation of Independent Business (NFIB) shows that job creation is weakening on Main Street.
Over half of small business owners tried to hire workers in February but couldn’t find qualified people. This problem is getting worse, not better.
“I’ve talked to so many shop owners who have ‘Help Wanted’ signs in their windows for months,” says Tray Abney, Nevada state director for NFIB. “They want to grow their businesses, but they can’t find the right people to hire.”
Nevada’s Job Market Crisis
The situation in Nevada is particularly troubling. The state has the worst unemployment rate in the nation at 5.8% in January, unchanged from December. This puts Nevada well above the national average.
Even more concerning is that despite having the highest unemployment rate, businesses still can’t find qualified workers. The Las Vegas metro area lost 7,500 jobs from December to January, according to the Department of Employment, Training and Rehabilitation (DETR).
David Schmidt, DETR’s chief economist, noted:
“We continue to see unemployment driven first by entrants into the labor market and second by job loss.”
Why This Matters to Conservatives
This jobs report shows something important: government is growing while private businesses struggle. The NFIB report specifically mentions that “public sector job growth remained solid” while “the private sector has taken the back seat on job creation.”
For those who believe in limited government, this is a warning sign. When government jobs grow faster than private sector jobs, it means more tax dollars supporting bigger government instead of fueling free enterprise.
The report also points out that the Trump administration is “aggressively addressing the rapid growth of government employees,” which is exactly what limited-government conservatives have been asking for.
Numbers Tell the Story
The numbers from the NFIB survey paint a clear picture:
38% of small business owners couldn’t fill open jobs (highest since August 2024) Retail, construction, and manufacturing had the most job openings 19% of owners said finding quality workers was their biggest problem 12% said labor costs were their biggest problem (near record high.)
Meanwhile, Nevada has fallen dramatically in job growth rankings. Once a leader, Nevada now ranks above only six other states: Wisconsin, Delaware, Iowa, Maine, West Virginia and South Dakota.
What Critics Say
Those who favor more government involvement argue that public sector jobs provide stability during uncertain times. They suggest more government training programs or higher minimum wages would help solve the worker shortage.
But the NFIB report shows wage increases are already “putting pressure on prices.” Forcing small businesses to pay even higher wages without addressing the skills gap would only make inflation worse.
The Path Forward for Nevada
The challenge facing Nevada’s small businesses goes beyond just finding workers. It’s about finding the right balance between government involvement and free market solutions.
As Nevada continues to lag behind other states in job growth, local business owners are looking for a more business-friendly environment. Many NFIB members have expressed concerns about regulations, the need for effective training programs that address skills gaps, and tax policies that allow them to reinvest in their businesses.
Small business advocates point to the need for fundamental economic reforms that would allow entrepreneurs to focus on growing their businesses rather than navigating complex regulatory requirements.
The Trump administration’s efforts to reduce the size of government could give Nevada business owners some relief. But state and local policies will ultimately determine whether Nevada can climb out of its position at the bottom of the employment rankings.
With the 20% Small Business Deduction set to expire at the end of the year, the next few months will be critical for Nevada’s economic future.
If Washington extends this policy while Nevada reduces its regulatory burden, we might see the Silver State’s economy strengthen again. If not, small business owners may continue to struggle while government employment expands.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
