NFIB small business optimism index rose 0.1 points in April to 95.9, holding below the 52-year average of 98.0.
Labor quality emerged as the top problem for owners with a record 34 percent reporting unfilled job openings.
Nearly 46 percent of firms trying to hire found few or no qualified applicants in the latest survey.
Uncertainty index remained elevated while profit trends and sales expectations showed mixed signals.
Owners cited ongoing cost pressures from energy and inputs amid broader inflation concerns.
Hiring plans stayed cautious despite some improvement in overall sentiment.
Index now sits at the 32nd percentile of its historical series.
Small operators hanging in there but labor headaches refuse to ease up.
Main Street hiring challenges continue
WASHINGTON, D.C. (May 7, 2026) – NFIB’s April Jobs Report shows softening in the employment market as the Small Business Employment Index fell 1.2 points to 100.4. This is the second consecutive month the Index declined. The current reading is now below the 2025 average of 101.2, but slightly above the historical average of 100.0. This decline is indicative of weakening in the labor market, though the just-above-average level still suggests a balanced labor market.
In April, 34% (seasonally adjusted) of small business owners reported job openings they could not fill, up 2 points from March and the highest level since June 2025. Unfilled job openings remain above the historical average of 24%. Twenty-nine percent have openings for skilled workers (up 2 points), and 13% have openings for unskilled labor (up 1 point).
“Even in a month with a weaker Employment Index, over half of small business owners reported hiring or trying to hire,” said Chief Economist Bill Dunkelberg. “A lack of qualified applicants has been a major hurdle for Main Street, and employers are struggling to fill open positions.”
The persistent struggle to find qualified workers is the silent killer of the small business sector. This disconnect stems directly from a decade of devaluing vocational training alongside a labor participation rate that refuses to budge from 61.8%. Small businesses are trapped in a death spiral where they must raise compensation by 30% just to keep their doors open while sales volume weakens in real terms.
Government bragging about low unemployment numbers ignores the reality that half of our small businesses cannot find a single person capable of performing the job. If we do not address the massive geographic and skill mismatches in the workforce, the inflation monster will only grow as businesses pass skyrocketing labor costs directly to the customer. Service will continue to slow and costs will climb not because of corporate greed but because the skilled American worker has become the rarest commodity on the market.