NFIB report shows balanced job market

The National Federation of Independent Businesses has released its January Jobs Report that includes the launch of the new Small Business Employment Index, which measures the current state of the small business labor market.  

The NFIB said the new index integrates actual and planned changes in employment and employee compensation into a singular data point. A higher Index reflects an overall tighter labor market; a lower Index reflects an overall weaker labor market. 

According to the report, the Employment Index fell nearly 1 point in January to 101.6, erasing about half of the large gain in December, which reached the highest level since March 2025.  

However, the Index remains above the historical average of 100, and just slightly above the 2025 average of 101.2. 

 NFIB Pennsylvania State Director Greg Moreland commented on the report. 

 “While hiring troubles are easing for small businesses, owners are concerned about Governor Shapiro’s costly budget proposal, including a minimum wage hike that will only make it harder to hire in Pennsylvania,” he said. “We urge the General Assembly to instead focus on legislation that will strengthen the workforce and improve the labor market.” 

“Main Street continues to search for qualified workers for open positions,” said Chief Economist Bill Dunkelberg. “Owners reported increased wages over the last three months, alongside plans to increase them in the next three months as well.” 

In January, 31% (seasonally adjusted) of small business owners reported job openings they could not fill in January, down 2 points from December. Unfilled job openings remain above the historical average of 24%. Twenty-five percent have openings for skilled workers (down 3 points), and 10% have openings for unskilled labor (unchanged). 

A seasonally adjusted net 16% of owners plan to create new jobs in the next three months, down 1 point from December. 

Overall, 50% of owners reported hiring or trying to hire in January, down 3 points from December and the lowest reading since May 2020. Forty-four percent of owners (88% of those hiring or trying to hire) reported few or no qualified applicants for the positions they were trying to fill (down 4 points). Twenty-five percent reported few qualified applicants (unchanged), and 19% reported none (down 4 points).