NFIB Hiring Index Slips Below 2025 Average

NFIB employment index drops below 2025 average – Image for illustrative purposes only (Image credits: Pixabay)

Small business hiring has eased for the second straight month, according to fresh figures from the National Federation of Independent Business. The employment index has now fallen below the average level recorded across all of 2025. At the same time, owners continue to report a large number of unfilled positions and ongoing trouble finding workers with the right skills.

Second Straight Month of Cooling

The latest NFIB reading shows hiring activity among small firms has lost momentum once again. This marks a clear shift from stronger readings earlier in the year. Many owners have scaled back plans to add staff, citing uncertainty about future demand. The drop below the 2025 average underscores how quickly conditions have changed for smaller employers. Data collected in recent weeks captured this softening across a broad range of industries.

Job Openings Remain Elevated

Despite the slowdown in hiring, the number of open positions at small businesses stays stubbornly high. Owners say they still need to fill roles but have grown more cautious about bringing on new workers. This combination of steady vacancies and reduced hiring plans points to a market that has not fully normalized. The persistence of openings suggests underlying demand for labor has not disappeared. Firms across sectors continue to list positions even as overall hiring activity declines.

Qualified Applicants in Short Supply

A recurring theme in the survey is the difficulty locating candidates who meet job requirements. Owners report that many applicants lack the necessary experience or training. This mismatch has kept some positions vacant longer than expected. The shortage appears across both skilled trades and professional roles. As a result, businesses have had to adjust operations or delay expansion plans while they search for suitable hires.