MARC JACOBS
Hutch Post
After a period of volatility in the wake of the COVID-19 pandemic, the labor market for small businesses appears to be showing signs of stabilization, according to the latest jobs report released on Thursday by the National Federation of Independent Business (NFIB).
The October survey found that 32% of small business owners nationwide reported job openings they were unable to fill—a figure unchanged from the previous month and the highest level since December 2020, outside of a similar peak in August of this year. Of those openings, 28% were for skilled positions, while 11% were for unskilled labor, the latter marking a two-point decrease from September.
“The post-Covid labor market appears to have mostly normalized on Main Street,” NFIB Chief Economist Bill Dunkelberg said. “Jobs are plentiful, albeit declining, while qualified applicants are scarce but increasing for some industries.”
In Kansas, NFIB State Director Dan Murray said finding qualified workers remains a significant challenge for many of the organization’s members. “Main Street employers want to hire and expand their businesses. But finding qualified applicants is a near impossibility for many of our members.”
The report also showed a slight dip in hiring plans, with a seasonally adjusted net 15% of business owners planning to create new jobs in the next three months—down one point from September. It’s the first decline in hiring intent since May 2025.
Despite high demand for workers, 56% of owners reported hiring or trying to hire in October, down two points from the previous month. Of those, 49% said they received few or no qualified applicants. Labor quality was cited as the single most important problem by 27% of small business owners overall, marking the highest level since November 2021.
Industries feeling the most pressure include construction, transportation, and professional services. Nearly half of all small businesses in construction reported labor quality as their top concern—22 points above the national average. Finance and agriculture were the least affected, with only 13% of finance-related businesses naming labor quality as their primary challenge.
While concerns over labor costs eased slightly, dropping to 8%—a three-point decline from September—raising compensation remains a tool for many employers. A net 26% of small business owners reported increasing pay in October, though that figure was down five points from the previous month. Nineteen percent plan to raise wages in the next three months.
“Small businesses are continuing to grapple with the dual pressure of a tight labor market and slowing demand,” Dunkelberg added. “Finding a balance will be key as we move into the new year.”
The National Federation of Independent Business represents thousands of small and independent business owners across Kansas and the nation.