February’s Small Business Economic Trends report saw a decline in small business optimism and uncertainty. NFIB’s new Employment Index increased nearly a point to 103.5, well above the historical average of 100. This increase indicates tightness in the small business labor market.

The NFIB Research Center’s podcast, Small Business by the Numbers, released a new episode covering key data points from the report. Experts explore the trends behind the data and discuss what February’s report means for the economic landscape.

Key findings in February’s report include:

• February’s Optimism Index decreased for the second straight month, falling to 98.8 but still slightly above the 52-year average of 98.  

• The Uncertainty Index decreased three points from January to 88, with higher sales and increased profits making February a positive month for many business owners. 

• The cost or availability of insurance as small business’s single most important problem climbed four points, with 13% of owners reporting it as their top issue. This is the highest percentage since December 2018. 

• Labor quality as the top issue for small business declined for the fourth straight month. Taxes are currently the top issue for small business owners, with 19% of businesses reporting taxes as their single most important problem.  

The NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986. Survey respondents are randomly drawn from NFIB’s membership. The report is released on the second Tuesday of each month. This survey was conducted in February 2026.