NFIB’s June Jobs Report showed the Small Business Employment Index remained essentially flat, registering 100.2 in June after measuring 100.3 in May.
It marked the fourth consecutive monthly decline. The current reading is below the 2025 average of 101.2 but still slightly above the historical average of 100.
In June, 32 percent of small business owners reported job openings they could not fill, up 3 points from May’s lowest level since May 2020. Twenty-seven percent had openings for skilled workers, unchanged from May, and 12 percent had openings for unskilled labor, up 3 points.
“Main Street job openings are starting to pick up after a decline in May,” NFIB Chief Economist Bill Dunkelberg said. “While more small businesses are looking to hire, many owners still cannot find qualified workers.”
NFIB State Director Rosemary Elebash said the latest survey reflects what many small business owners are experiencing throughout Alabama.
“Small businesses are hiring, but many of them are still struggling to find people with the skills and experience they’re looking for,” Elebash said.
A seasonally adjusted net 11 percent of owners said they plan to create new jobs in the next three months, up 2 points from May. Hiring plans are at their historical average of a net 11 percent.
Overall, 62 percent of owners reported hiring or trying to hire in June, up 7 points from May. Fifty-one percent of owners, or 84 percent of those hiring or trying to hire, reported few or no qualified applicants for the positions they were trying to fill, up 5 points. Twenty-seven percent reported few qualified applicants, up 3 points, and 24 percent reported none, up 2 points.
In June, 19 percent of small business owners cited “labor quality or availability” as their single most important problem, up 6 points from May’s lowest level since December 2016.
While reports of labor quality or availability as the single most important problem rose in June, reports of labor costs eased. Eight percent of business owners reported labor costs as their single most important problem, down 6 points from May’s historic high reading.
Both labor compensation measures declined in June. A seasonally adjusted net 28 percent of owners reported raising compensation, down 3 points from May and the lowest reading of the year. A seasonally adjusted net 17 percent said they plan to raise compensation in the next three months, down 1 point from May.
