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- calendar_today November 8, 2026
Small Business Hiring Picks Up in October
The latest survey from the National Federation of Independent Business (NFIB) shows a notable increase in small business hiring efforts for October 2026. According to the report, 56 percent of small business owners were either hiring or trying to hire last month, representing a 5 percentage point rise from September. Despite heightened activity, employers continue facing difficulties filling open positions.
Job Creation and Labor Market Trends
The NFIB survey indicated that a seasonally adjusted net 18 percent of owners planned to create new jobs, a slight increase of 1 percentage point. The Small Business Employment Index, which tracks labor market trends, rose by 0.2 points to 100.8 in October. While this marks an improvement, it still falls below the 2025 average of 101.2, albeit above the historical average of 100.0.
Challenges in Finding Qualified Workers
The labor market continues to challenge small business owners, with worker shortages persisting. Rosemary Elebash, NFIB's Alabama state director, observed that these national survey results reflect what she hears locally. Many small businesses report ongoing struggles to recruit enough workers for their operations. In October, a seasonally adjusted 36 percent of owners reported job openings they could not fill, an increase of 4 percentage points from September and 12 points above the historical average.
Breakdown of Job Openings
Among all owners, 31 percent had openings for skilled workers (up 4 points from September), while 15 percent sought unskilled labor (down 1 point). A significant majority—48 percent of all owners and 86 percent of those hiring—reported facing few or no qualified applicants for their openings. Specifically, 28 percent reported few qualified applicants, and 20 percent found none at all.
Operating Problems: Labor Quality and Costs
Labor quality and availability remain at the forefront of small business concerns. Twenty-five percent of owners cited these factors as their top operating problem in October, which is down 1 point from September but still 13 points above the long-term average. Labor costs are also a concern, with 7 percent naming it as the most important problem, a 1-point increase and the highest level since December 2020.
Wage Increases and Compensation Plans
The data also point to increasing compensation efforts among small businesses. In October, a seasonally adjusted net 29 percent of owners reported raising compensation, rising by 1 percentage point from the prior month. Looking forward, a net 24 percent planned to raise compensation over the next three months, up 4 points and representing the highest figure since December 2025.
Summary
While small business hiring efforts showed renewed strength in October 2026, the ability to fill jobs remains hampered by ongoing worker shortages and insufficient numbers of qualified job applicants. Labor quality and rising labor costs continue to be principal challenges for business owners trying to grow their operations.
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Source: alreporter.com.
