WASHINGTON, D.C. (november 7,2025) – Small business owners continue to grapple with a tight labor market,though signs point to a potential easing,according to the National Federation of Autonomous business (NFIB) October Jobs report released today. While unfilled job openings remain elevated, they have stabilized for the second consecutive month.
the report indicates 32% of small business owners reported positions they couldn’t fill in October (seasonally adjusted),holding steady from September. This level hasn’t been seen since december 2020. Currently, 28% of owners have openings for skilled workers – unchanged from the prior month – while 11% are seeking to fill unskilled labor positions, a 2-point decrease.
“The post-COVID labor market appears to have mostly normalized on main Street,” said NFIB Chief Economist Bill Dunkelberg.”Jobs are plentiful albeit declining, while qualified applicants are scarce but increasing for some industries.”
Hiring plans are also showing a slight pullback. A net 15% of owners plan to create new jobs in the next three months, down 1 point from September – marking the first decline since hiring intentions began to rise in May 2025. 56% of small business owners reported hiring or attempting to hire in October, a 2-point drop from september.Of those actively hiring, 49% (down 1 point) reported receiving few or no qualified applications. Specifically, 31% found few qualified applicants (up 2 points) and 18% reported none (down 3 points).
A growing concern for small businesses is the quality of the labor pool. In october, 27% of owners identified labor quality as their top challenge, a significant 9-point increase from September and the highest reading since November 2021.this issue was notably acute in construction (49%), transportation, and professional services, while less prominent in finance (13%) and agriculture.
Despite concerns about quality, pressure from labor costs eased slightly, falling 3 points to 8% of owners citing it as their most crucial problem.
Compensation plans remain robust, with a net 26% of owners reporting raising compensation in October, down 5 points from September. Looking ahead, a net 19% (seasonally adjusted) anticipate raising compensation in the coming three months, remaining consistent with September’s figures.
NFIB State Director Brad Jones emphasized the ongoing difficulty for small businesses, stating, “Small business owners want to hire, but for many of our members, finding qualified applicants is a near-impossibility. That makes it tough to expand and plan ahead.”
The full NFIB Jobs Report is available at: https://www.nfib.com/wp-content/uploads/2025/11/NFIB-October-2025-Jobs-Report.pdf
