NFIB report shows slight decline in small business hiring outlook

FOX23 News at 9 p.m

JEFFERSON CITY, Mo., (KBSI) — The National Federation of Independent Business reported a slight decline in its Small Business Employment Index in April, signaling continued hiring challenges for small businesses.

The index fell 1.2 points to 100.4, marking the second consecutive monthly decline and dropping below the 2025 average of 101.2, though still slightly above the historical average.

The report found 34% of small business owners reported job openings they could not fill, the highest level since June 2025 and above the historical average. Employers cited a shortage of qualified applicants as a key issue.

More than half of business owners reported hiring or attempting to hire in April, while 46% said they received few or no qualified applicants for open positions.

A net 13% of owners said they plan to create new jobs in the next three months, slightly above recent averages.

Labor quality was cited as the most significant issue by 18% of respondents, while 9% said labor costs were their primary concern.

The report also found a net 30% of business owners increased compensation in April, while 18% plan to raise wages in the coming months.