NFIB’s Jobs Report for February shows that the Small Business Employment Index rose nearly 1 point to 103.5, showing further tightness after January consolidated the gains measured in December. This current reading is 2.3 points above the 2025 average of 101.2, and 3.5 points above the historical average of 100.
In February, 33% (seasonally adjusted) of small business owners reported job openings they could not fill, up 2 points from January. Unfilled job openings remain above the historical average of 24%. Twenty-eight percent have openings for skilled workers (an increase of 3 points), and 10% have openings for unskilled labor, which is unchanged.
“NFIB’s latest monthly jobs report shows a growing tightness in the small business labor market here in New Jersey and nationwide,” said NFIB New Jersey State Director Eileen Kean. “Our members are telling us they want to hire, but many of them are still struggling to find the right applicants. We are urging the legislature to resist proposals that would exacerbate workforce challenges and put further pressures and burdens on New Jersey’s small businesses.”
A seasonally adjusted net 12% of owners plan to create jobs in the next three months, down 4 points from January and the lowest level since May 2025. Despite the decrease, hiring plans are close to their average of a net 11%.
Overall, 54% of owners reported hiring or trying to hire in February, up 4 points from January. Forty-six percent of owners (85% of those hiring or trying to hire) reported few or no qualified applicants for the positions they were trying to fill (up 2 points). Twenty-five percent reported few qualified applicants (unchanged), and 21% reported none (up 2 points).
In February, 15% of small business owners cited labor quality as their single most important problem, down 1 point from January and the fourth consecutive monthly decline. The last time labor quality, reported as the single most important problem, was this low was in April 2020 during the depths of the pandemic. Labor costs remained at 9%.
Seasonally adjusted, a net 34% of small business owners reported raising compensation in February, up 2 points from January and the highest level since March 2025. A net 22% (seasonally adjusted) plan to raise compensation in the next three months, unchanged from January.
