The National Federation of Independent Business (NFIB)’s March Jobs Report shows that the Small Business Employment Index fell 1.9 points to 101.6. Despite the decline, the current reading remains above the 2025 average of 101.2 and the historical average of 100.
In March, 32 percent (seasonally adjusted) of small business owners reported job openings they could not fill, down 1 point from February. Unfilled job openings remain above the historical average of 24 percent. Twenty-seven percent have openings for skilled workers (down 1 point), and 12 percent have openings for unskilled labor (up 2 points).
“While small businesses are not hiring extensively, they continue to face difficulties related to labor cost and quality,” said Bill Dunkelberg, chief economist for NFIB. “Despite the current stagnant employment growth, economic conditions could change rapidly.”
A seasonally adjusted net 12 percent of owners plan to create new jobs in the next three months, unchanged from February and close to the average of net 11 percent.
Overall, 52 percent of owners reported hiring or trying to hire in March, down 2 points from February. Forty-five percent of owners (87 percent of those hiring or trying to hire) reported few or no qualified applicants for the positions they were trying to fill (down 1 point). Twenty-two percent reported few qualified applicants (down 3 points), and 23 percent reported none (up 2 points).
In March, 15 percent of small business owners cited labor quality as their single most important problem, unchanged from February. Ten percent of business owners reported labor costs as their single most important problem, up 1 point from February. Seasonally adjusted, a net 33 percent of small business owners reported raising compensation in March, down 1 point from February.