The National Federation of Independent Business (NFIB)’s October jobs report shows an increase in hiring, with plans to create jobs rising 1 point to 18 percent (seasonally adjusted) and the percent of owners reporting hiring or trying to hire in October increasing 5 points to 56 percent.
“In a reversal from last month, hiring and compensation picked up for small business owners in October,” said Bill Dunkelberg, chief economist for NFIB. “The desire to create new jobs and increase wages is there, but the challenge of finding qualified workers remains a persistent barrier for Main Street.”
The Small Business Employment Index, which measures the current state of the small business labor market, rose 0.2 points in October to 100.8, below the 2025 average of 101.2 but above the historical average of 100.0.
Seasonally adjusted 36 percent of owners reported job openings they could not fill in October, up 4 points from September and 12 points above the historical average. Thirty-one percent have openings for skilled workers (up 4 points), and 15 percent have openings for unskilled labor (down 1 point).
Forty-eight percent (86 percent of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill. Twenty-eight percent of owners reported few qualified applicants for their open positions and 20 percent reported none.
Seasonally adjusted, a net 29 percent of small business owners reported raising compensation in October, up 1 point from September. A net 24 percent (seasonally adjusted) plan to raise compensation in the next three months, up 4 points from September and the highest level since December 2025.