FOR IMMEDIATE RELEASE
Contact: Patrick Connor, Washington State Director, patrick.connor@nfib.org,
or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

OLYMPIA, Wash., March 5, 2026—From NFIB Washington State Director Patrick Connnor on today’s release of the monthly Jobs Report from the National Federation of Independent Business (NFIB), which showed that the Small Business Employment Index ticked up nearly 1 point to 103.5, a 2.3-point increase above the 2025 average of 101.2, and 3.5 points above the historical average of 100.

“Washington state is experiencing net zero job growth while small employers throughout the rest of the country scramble to find enough workers to fill vacant positions. Olympia’s bad decisions—like a $9.5 billion tax hike last year, and this year’s proposed $3.5 billion so-called ‘Millionaire Tax’ that will hit Main Street, not Wall Street—continue to drive job creators away, resulting in less state revenue, not more. While not headline grabbing like Starbuck’s announcement of a new headquarters and job transfers to Tennessee, Washington small businesses continue to shed jobs due to the state Legislature’s misguided tax and regulatory policies.”

More information about the Millionaire Tax and its impact on small businesses can be read at NFIB Launches Radio, Digital Ads to Stop State Income Tax.

NFIB’s Jobs Report is a national survey of NFIB-member small-business owners, not broken down by state. The NFIB Small Business Employment Index is a new measure of the current state of the small business labor market. The 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.

From NFIB Chief Economist Bill Dunkelberg

“February’s numbers show a growing tightness in the small business labor market. While the overall market remains in balance, employers need more skilled workers to fill open positions.”

Highlights from the Latest NFIB Jobs Report

• A seasonally adjusted net 12% of owners plan to create new jobs in the next three months, down 4 points from January and the lowest level since May 2025. Despite the decrease, hiring plans are close to their average of a net 11%.
• In February, 15% of small business owners cited labor quality as their single most important problem, down 1 point from January and the fourth consecutive monthly decline. The last time labor quality, reported as the single most important problem, was this low was in April 2020. Labor costs, reported as the single most important problem by small business owners, remained at 9%.
• Seasonally adjusted, a net 34% of small business owners reported raising compensation in February, up 2 points from January and the highest level since March 2025. A net 22% (seasonally adjusted) plan to raise compensation in the next three months, unchanged from January.

Keep up with the latest Washington state small business news at www.nfib.com or on X @NFIB_WA or on Facebook @NFIB.WA

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For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.

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