Small businesses are having great difficulty filling positions, according to the latest National Federation of Independent Business (NFIB) report.

The share of U.S. firms with open positions rose to 36% in June, matching November 2000 as the highest in monthly records dating back to 1973. More than 20% of small-business owners reported that finding qualified workers was their biggest problem, according to the group’s survey. Although 63% of small-business owners reported hiring or trying to hire, 55% reported that there were few or no qualified applicants for the positions they were trying to fill.

“The availability of qualified workers is impeding the growth in employment,” NFIB Chief Economist William Dunkelberg said in the report. “Absent significant increases in the size of the labor force through a higher participation rate, owners will increasingly be pirating workers from other firms rather than new entrants in the labor force. There will also be compromises in qualifications and more resources invested in training both new employees and existing workers.”

In order to lure skilled workers, small firms are being forced to raid the coffers and offer increased compensation. In June, the net share of small businesses that raised compensation eased to 31%, down from an all-time high of 35% in May.

Hiring challenges persist in the promotional products industry as well. “It certainly does seem like it’s been much harder to fill sales roles than in the past,” Justin MacDonald, general manager of Florida-based TJM Promos (asi/342485), told Counselor. “It’s an exhausting and sometimes overwhelming task, so I can understand why some companies might reach out to recruiters or staffing agencies.”

Derek Diffley, president of Quebec-based Wholesale Cutting Boards (asi/97070), said his small company has had great difficulty attracting talent. The supplier is opening a distribution center in Houston later this year in an effort to recruit and strengthen its 11-member workforce. “People aren’t looking for jobs right now,” Diffley said. “It took me close to six months to find my other sales guy. Hopefully by diversifying geographic locations, we’ll be able to hire more talent.”