The NFIB Small Business Optimism Index declined 0.6 points in October to 98.2 but remained above its 52-year average of 98.
Among the key findings of the report, 32% (seasonally adjusted) of all owners reported job openings they could not fill in the current period, unchanged for the second consecutive month. Before August, the last time unfilled job openings hit 32% was in December 2020.
In October, 27% of small business owners cited labor quality as their single most important problem, up 9 points from September and the highest level since the record high of 29% in November 2021.
Labor quality ranked as the top problem and was 11 points higher than taxes, which ranked second. In October, 60% of small business owners reported that supply chain disruptions were affecting their business to some degree, down 4 points from September.
“NFIB’s latest survey shows that optimism among small businesses declined slightly in October as owners reported lower sales and reduced profits.” said NFIB State Director Eileen Kean. “A reduction in sales and profits has certainly taken a toll on small business owners’ optimism in New Jersey.”
Of the 56% of owners hiring or trying to hire in October, 88% reported few or no qualified applicants for the positions they were trying to fill. A seasonally adjusted net 15% of owners plan to create jobs in the next three months, down 1 point from September. This marks the first decline since hiring plans started to increase in May 2025.
Twenty-seven percent of small business owners reported labor quality as their single most important problem, up 9 points from September and ranking as the top problem. The percent of small business owners reporting labor costs as their single most important problem fell 3 points to 8%.
Labor costs reported as the single most important problem for business owners fell by 3 points from September to 8%. Seasonally adjusted, a net 26% reported raising compensation, down 5 points from September. A seasonally adjusted net 19% plan to raise compensation in the next three months, unchanged from September.
The NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986.
Survey respondents are randomly drawn from NFIB’s membership. The report is released on the second Tuesday of each month. This survey was conducted in October 2025.
In conjunction with the October report, NFIB is debuting a podcast: “Small Business by the Numbers” – this is the NFIB Research Center’s new podcast where NFIB hosts discuss everything related to the small business economy. Co-hosts Holly Wade, the executive director of the NFIB Research Center, and Peter Hansen, director of research and policy analysis, will discuss data, stories, and the economic conditions affecting small businesses nationwide.
