Small Business – NFIB’s April employment index softened, with hiring plans holding up even as unfilled positions and skilled-worker shortages rose.
Small businesses are reporting a softer employment picture in April, even as many owners say they’re still hiring or trying to hire.
The NFIB employment index for April fell 1.2 points to 100.4, marking a decline for the second month in a row.. That level sits below the 2025 average of 101.2. though it remains just above the historical average of 100.0—an indication that the labor market is weakening but not collapsing.. In plain terms, the direction is toward fewer openings being filled quickly, even as hiring activity continues.
A key warning sign for employers came from the share of small businesses reporting job openings they could not fill.. In April, 34% of small business owners said they had openings they were unable to staff, seasonally adjusted.. That was up 2 points from March and the highest level since June 2025.. The proportion of unfilled openings is still above the historical benchmark of 24%. suggesting persistent friction between what small businesses need and what applicants are available.
The shortage appears to be particularly acute for certain categories of roles.. Twenty-nine percent of owners reported openings for skilled workers in April, up 2 points from March.. Meanwhile, 13% said they had openings for unskilled labor, up 1 point.. Together. the breakdown points to a labor supply problem that spans both skill levels. while the skilled-worker gap stands out as a specific strain on small hiring.
Even with that softer overall Employment Index. NFIB Chief Economist Bill Dunkelberg said more than half of small business owners reported hiring or attempting to hire.. He attributed the main bottleneck to a lack of qualified applicants. noting that many employers are struggling to fill open roles despite ongoing efforts to staff.
NFIB State Director Rosemary Elebash drew similar conclusions in Alabama, saying small businesses there face the same recruiting challenges.. Her concern was that when employers cannot find people with the right skills and experience. they struggle to deliver the service their customers expect.. That, in turn, makes it harder for businesses to sustain the level of support they provide within their communities.
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