Small Businesses Struggle with Job Openings as Hiring Plans Decline

Small businesses in the United States are navigating a complex labor market landscape, where job openings remain high but qualified applicants are increasingly hard to find. According to the latest NFIB Jobs Report for October 2025, 32% of small business owners reported having unfilled job positions, marking a stagnation that echoes labor market trends from the height of the pandemic.

Economists have long warned about the challenges posed by labor shortages, and the data indicates that these issues persist, impacting small business owners significantly. Bill Dunkelberg, NFIB’s Chief Economist, states, “The post-Covid labor market appears to have mostly normalized on Main Street. Jobs are plentiful albeit declining, while qualified applicants are scarce but increasing for some industries.” This sentiment reflects the dual nature of the current job market—many roles are available, yet the talent pool remains shallow, especially in key sectors.

The report highlights that 28% of small businesses have openings specifically for skilled workers. However, there has been a slight reduction in positions available for unskilled labor, dropping to 11%. This split illustrates a growing need for skill-specific training, which small business owners may want to consider investing in, either through internal training programs or partnerships with local educational institutions.

Interestingly, the intention to hire shows signs of gradual decline. A net 15% of owners plan to create new jobs in the next three months, down 1 point from September. This marks the first decrease in hiring plans since May, suggesting that while small businesses remain keen to expand, the challenges in filling current roles may hinder growth.

Overall, 56% of small business owners reported actively hiring or trying to hire, down 2 points from the previous month. A staggering 49% of those hiring noted that they are facing a dearth of qualified candidates, yet the small business landscape is diverse. In construction, for instance, nearly half (49%) view labor quality as the foremost challenge, compared to only 13% in finance. This disparity encourages a targeted approach for small business owners operating in different sectors, urging them to develop tailored strategies for recruitment and workforce development.

The increasing concern for labor quality is not the only pressing issue. The report indicates a decrease in the proportion of owners citing labor costs as their primary challenge, which fell 3 points down to 8%. Meanwhile, compensation is undergoing adjustments—26% of small business owners reported having raised wages in October, though this is a decline from September’s figures. Interestingly, a consistent 19% of owners plan to increase compensation in the upcoming months, indicating a commitment to attracting talent even amid rising wage pressures.

For small business owners, it’s imperative to understand these labor dynamics. The ongoing labor shortage presents both challenges and opportunities. Investing in employee training and development, as well as creating a compelling workplace culture, could put businesses in a better position to attract skilled workers. Furthermore, businesses can explore flexible working conditions or improved benefits to make openings more attractive to potential hires.

However, navigating these changes requires nimbleness. As business owners grapple with the shifting landscape of labor demand and supply, they must stay informed about industry trends and be ready to adapt their strategies. Engaging with local workforce development initiatives and tapping into community resources can further assist in bridging the gap between available jobs and qualified applicants.

In this evolving environment, small business owners are facing a critical need to balance their hiring aspirations with the realities of employee availability and skills quality. Staying adaptive and proactive will be key in ensuring sustained growth and stability as they strive to fill the ranks of their workforce.

For a deeper dive into the data and insights from the NFIB October 2025 Jobs Report, you can view the full report here.

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This article, "Small Businesses Struggle with Job Openings as Hiring Plans Decline" was first published on Small Business Trends

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