Just over a third of US small-business owners said they raised worker compensation in June on net, the smallest share in more than two years, the National Federation of Independent Business said Thursday.

The net percentage of small firms boosting worker pay fell five points to 36% last month, the least since May 2021. That’s down substantially from a record high of 50% at the start of last year. Just under a quarter of owners said they plan to raise compensation in the next three months.

While that suggests some easing in the labor market, small businesses continue to struggle to fill vacancies. Some 42% of owners reported job openings they could not fill in the period, the lowest share this year but still elevated compared to pre-pandemic levels. Overall, 59% of owners reported hiring or trying to hire in June.

“With labor demand remaining strong, owners will have to continue raising compensation to compete and fill their open positions, although that pressure is easing a bit,” Bill Dunkelberg, NFIB’s chief economist, said in a statement.