FOR IMMEDIATE RELEASE
Contact: John Kabateck, California State Director, john@kabstrat.com
or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

SACRAMENTO, Calif., May 8, 2026—From NFIB California State Director John Kabateck on yesterday’s release of the monthly Jobs Report from the National Federation of Independent Business (NFIB) showing a softening in the employment market as the Small Business Employment Index fell 1.2 points to 100.4. This is the second month in a row the Index declined. The current reading is now below the 2025 average of 101.2, but slightly above the historical average of 100.0. This decline is indicative of weakening in the labor market, though the just-above-average level still suggests a balanced labor market.

“Although the Jobs Report slipped a bit last month, the Index didn’t fall below its historical average, meaning the small business economy seems to be showing a resiliency some thought it didn’t have. This is due in no small part, I believe, to Congress making the 20% Small Business Deduction permanent. Sad to report that the California Legislature has been no help at all, erecting roadblock after roadblock to common sense policies. Proposals such as Senate Bill 84, giving small business owners a period to fix a workplace violation before getting sued, and Senate Bill 981, giving the peoples’ elected representatives a say in regulations adopted by state agencies (imagine that!), aren’t getting any traction. Policymakers, especially in an election year, would be wise to heed the cries and calls of their constituents, instead of Sacramento special interests.”

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

“Even in a month with a weaker Employment Index, over half of small business owners reported hiring or trying to hire. A lack of qualified applicants has been a major hurdle for Main Street, and employers are struggling to fill open positions.”

Highlights from the Latest NFIB Jobs Report

• In April, 34% (seasonally adjusted) of small business owners reported job openings they could not fill, up 2 points from March and the highest level since June 2025.
• Unfilled job openings remain above the historical average of 24%. Twenty-nine percent have openings for skilled workers (up 2 points), and 13% have openings for unskilled labor (up 1 point).
• A seasonally adjusted net 13% of owners plan to create new jobs in the next three months, up 1 point from March and close to the average of net 11%.
• Seasonally adjusted, a net 30% of small business owners reported raising compensation in April, down 3 points from March. A net 18% (seasonally adjusted) plan to raise compensation in the next three months, unchanged from March.

Keep up with the latest California small business news at www.nfib.com. Follow us on X @NFIB_CA and on Facebook @NFIB.CA.

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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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