Small Businesses Still Struggling to Fill Job Openings

Labor remains one of the biggest challenges for small businesses, with 27 percent of employers citing labor quality as their single most important problem and 32 percent saying they could not fill open positions — the highest level since December 2020.

These findings come from the latest National Federation of Independent Business (NFIB) Small Business Optimism Index, which reported results from an October 2025 survey of 984 small and independent businesses. Labor quality ranked as the top problem in the October survey — 11 points ahead of taxes — and was at the highest level since 29 percent of respondents reported it as their biggest concern in November 2021.

The overall index stood at 98.2 for October, a 0.6-percentage-point decrease from September but still above the 52-year average of 98. However, the ongoing labor concerns drove the uncertainty component of the index down to 88, the lowest reading of the year.

While finding qualified applicants remains difficult, the situation does appear to be improving for businesses. The NFIB noted that the last 12 months show clear movement toward a somewhat easier hiring environment, as the percentage of small businesses reporting “few” qualified applicants has strongly exceeded those who report “no” qualified applicants.

Meanwhile, pricing volatility appears to be stabilizing. Only 31 percent of small businesses reported higher average prices (down 2 points from September), while 12 percent reported lower average selling prices (up 2 points).

Supply chain conditions also improved during October. Sixty percent of small business owners reported that supply chain disruptions affected their business to some degree, 4 percent fewer than in September. The degree of those disruptions was also less severe, with only 4 percent reporting a significant impact (down 1 percent), 17 percent reporting a moderate impact (down 1 point) and 39 percent reporting a mild impact (down 2 points).

The full NFIB Small Business Optimism Index can be found here.