US Small Businesses Face Rising Worker Shortages as Hiring Picks Up, NFIB Says

01:27 PM EST, 11/05/2026 (MT Newswires) -- A seasonally adjusted 36% of US small businesses reported having trouble filling positions in October, up from 32% in September, according to a National Federation of Independent Business survey released Thursday. The NFIB's Small Business Employment Index rose to 100.8 in October from 100.6 in September, above the historical average of 100.0 and below the 2025 average of 101.2. The percentage of business owners reporting labor quality as their top business concern fell to 25% from 26%, while labor costs were listed as the single most important concern by 7%, up from a nearly six-year low of 6% in September. "In a reversal from last month, hiring and compensation picked up for small business owners in October," said Bill Dunkelberg, NFIB chief economist. "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." About 56% of owners said they were trying to hire in the month, up from 51% in September. Around 86% of the respondents who were hiring or trying to hire reported finding few or no qualified applicants for the positions they were trying to fill. Hiring plans for the next three months rose to 18% from 17% in September. A seasonally adjusted net 29% of owners said they needed to raise compensation to hire workers in October, up from 28% in September. A net 24% of owners said they plan to raise compensation in the next three months, up from 20% in September and the highest since December 2025.