PHOENIX, AZ (July 2, 2026) – NFIB’s June Jobs Report shows that the Small Business Employment Index remained essentially flat, registering 100.2 in June after measuring 100.3 in May. This is the fourth consecutive month the Index declined. The current reading is below the 2025 average of 101.2 but still slightly above the historical average of 100.0.

In June, 32% (seasonally adjusted) of small business owners reported job openings they could not fill, up 3 points from May’s lowest level since May 2020. Twenty-seven percent have openings for skilled workers (unchanged), and 12% have openings for unskilled labor (up 3 points).

“Main Street job openings are starting to pick up after a decline in May,” said NFIB Chief Economist Bill Dunkelberg. “While more small businesses are looking to hire, many owners still cannot find qualified workers.”

NFIB State Director Chad Heinrich said the survey’s findings reflect what many small business owners in Arizona are experiencing. “Our members have positions to fill, but many of them report they are struggling to find applicants with the right experience and background.”

A seasonally adjusted net 11% of owners plan to create new jobs in the next three months, up 2 points from May. Plans to hire are currently at its historical average of a net 11%.

Overall, 62% of owners reported hiring or trying to hire in June, up 7 points from May. Fifty-one percent of owners (84% of those hiring or trying to hire) reported few or no qualified applicants for the positions they were trying to fill (up 5 points). Twenty-seven percent reported few qualified applicants (up 3 points), and 24% reported none (up 2 points).

In June, 19% of small business owners cited “labor quality or availability” as their single most important problem, up 6 points from May’s lowest level since December 2016. While reports of labor quality or availability as the single most important problem rose in June, reports of labor costs eased. Eight percent of business owners reported labor costs as their single most important problem, down 6 points from May’s historic high reading.

In June, both labor compensation measures declined. A seasonally adjusted net 28% reported raising compensation, down 3 points from May and the lowest reading of the year. A net 17% (seasonally adjusted) plan to raise compensation in the next three months, down 1 point from May.

Click here to view the entire NFIB Jobs Report.