Small business hiring efforts rise in October as worker shortages persist
NFIB’s October survey found 56 percent of small business owners were hiring or trying to hire, up 5 percentage points from September.
More small business owners reported hiring or trying to hire in October, according to the National Federation of Independent Business. The share rose 5 percentage points from September to 56 percent. A seasonally adjusted net 18 percent of owners planned to create jobs, up 1 percentage point.
“In a reversal from last month, hiring and compensation picked up for small business owners in October,” NFIB Chief Economist Bill Dunkelberg said. “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.”
Rosemary Elebash, NFIB’s Alabama state director, said the national survey reflects what she’s hearing from small business owners in Alabama. She said many members still struggle to find enough workers.
“Tuesday’s election provided some assurances that the legislature will continue to listen to them and pass legislation that allows them to own, operate and grow their businesses,” Elebash said.
The Small Business Employment Index, which tracks conditions in the small business labor market, rose 0.2 points to 100.8 in October. It remained below the 2025 average of 101.2 and above the historical average of 100.0.
A seasonally adjusted 36 percent of owners reported job openings they could not fill in October, up 4 percentage points from September and 12 points above the historical average. Thirty-one percent reported openings for skilled workers, up 4 points, and 15 percent reported openings for unskilled workers, down 1 point.
Forty-eight percent of all owners, or 86 percent of those hiring or trying to hire, reported few or no qualified applicants. Among all owners, 28 percent reported few qualified applicants and 20 percent reported none.
Twenty-five percent of owners cited the quality or availability of workers as their top operating problem, down 1 percentage point from September and 13 points above the historical average. Seven percent cited labor costs as their most important problem, up 1 point from September, when the share was at its lowest since December 2020.
A seasonally adjusted net 29 percent of owners said they raised compensation in October, up 1 percentage point from September. A seasonally adjusted net 24 percent planned to raise compensation in the next three months, up 4 points from September and the highest share since December 2025.
