NFIB’s April Jobs Report shows softening in the employment market as the Small Business Employment Index fell 1.2 points to 100.4.
The index has declined for a second consecutive month. April’s reading was below the 2025 average of 101.2 but slightly above the historical average of 100.0. The decline indicates a weakening labor market, although the just-above-average level still suggests a balanced labor market.
In April, 34 percent of small business owners, seasonally adjusted, 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 percent. Twenty-nine percent had openings for skilled workers, up 2 points, and 13 percent had 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,” Chief Economist Bill Dunkelberg said. “A lack of qualified applicants has been a major hurdle for Main Street, and employers are struggling to fill open positions.”
NFIB State Director Rosemary Elebash said Alabama small businesses are facing the same challenges.
“Unless employers can find the right people with the right skills and experience, they can’t provide the level of service their customers want, and it becomes harder for them to support their communities,” Elebash said.
A net 13 percent of owners, seasonally adjusted, plan to create new jobs in the next three months, up 1 point from March and close to the average of a net 11 percent. Overall, 53 percent of owners reported hiring or trying to hire in April, up 1 point from March. Forty-six percent of owners, or 87 percent of those hiring or trying to hire, reported few or no qualified applicants for the positions they were trying to fill, up 1 point. Twenty-six percent reported few qualified applicants, up 4 points, and 20 percent reported none, down 3 points.
In April, 18 percent of small business owners cited labor quality as their single most important problem, up 3 points from March and above the historical average of 12 percent. Nine percent of business owners reported labor costs as their single most important problem, down 1 point from March.
A net 30 percent of small business owners, seasonally adjusted, reported raising compensation in April, down 3 points from March. A net 18 percent, seasonally adjusted, plan to raise compensation in the next three months, unchanged from March.
To view the full NFIB Jobs Report, visit here.
