NFIB Small Business Employment Index Slips to 100.3 as Labor Costs Hit Record 14%
Updated
Updated · ROI-NJ.com · Jun 5
NFIB Small Business Employment Index Slips to 100.3 as Labor Costs Hit Record 14%
3 articles · Updated · ROI-NJ.com · Jun 5
Summary
May's NFIB small-business employment index edged down to 100.3 from 100.4, marking a third straight monthly decline and sitting below the 2025 average of 101.2.
Labor costs became the top pressure point: 14% of owners cited them as their single biggest problem, up 5 points from April and the highest reading in the survey's history.
Job demand softened as 29% of owners reported unfilled openings, down 5 points to the lowest level since May 2020, while net hiring plans fell 4 points to 9%, also a six-year low.
Hiring conditions still looked tight despite that pullback, with 55% hiring or trying to hire and 46% reporting few or no qualified applicants; labor quality concerns dropped to 13%, the lowest since December 2016.
Pay pressures remained elevated rather than accelerating, with a net 31% raising compensation in May and 18% planning increases, suggesting small firms are pulling back on hiring even as wage costs stay high.