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NFIB says small-business hiring plans reach highest level since October 2022

NFIB’s July Jobs Report found small-business hiring plans rose to their highest level since October 2022, even as labor-quality concerns and compensation measures increased.

NFIB’s July Jobs Report showed small-business hiring plans rose in July to their highest level since October 2022, while more owners said they could not fill open jobs and compensation plans increased.

The Small Business Employment Index rose to 102.1 in July from 100.2 in June after four months of decline, according to the report. NFIB said the reading was above the 2025 average of 101.2 and the historical average of 100.0.

NFIB said 36% of small business owners had job openings they could not fill in July, up 4 points from June and the highest level since June 2025. The report said 31% had openings for skilled workers and 14% had openings for unskilled labor.

A net 20% of owners said they plan to create new jobs in the next three months, up 9 points from June. NFIB said that was the highest level since October 2022 and 9 points above the historical average.

Actual hiring activity fell 1 point, with 61% of owners reporting they were hiring or trying to hire in July. Of those, 51% said they had few or no qualified applicants. That included 32% who reported few qualified applicants and 19% who reported none.

Labor quality or availability was cited by 27% of owners as their single most important problem, up 8 points from June and 15 points above the historical average of 12%. Labor costs were unchanged at 8% as the top problem.

Compensation measures also moved higher. NFIB said 31% of owners reported raising compensation in July, up 3 points from June, and 19% planned to raise compensation in the next three months, up 2 points.

NFIB Chief Economist Bill Dunkelberg said labor quality or availability had become a top concern and said the hiring plans suggest small business owners expect a surge in business that will require more workers.

NFIB’s report did not provide methodology details in the source text beyond the figures quoted. The July figures follow a June reading of 100.2 for the Small Business Employment Index.

Sources