Job Growth Stalls While Optimism Dips in August

September 18, 2024 Last Edit: July 1, 2025

The August Small Business Economic Trends survey found that 24% of small business owners cited inflation as their top concern – a 1-point decrease from the July survey

Job Growth Stalls While Optimism Dips in August

What it means: In the August report, small business optimism fell 2.5 points. Inflation remains small businesses’ top concern. Our take: Optimism continues to fluctuate month-to-month as hiring challenges, low sales and increasing cost pressures continue to cause concern.

The NFIB Small Business Economic Trends (SBET) August report revealed that the Optimism Index fell by 2.5 points in August to 91.2, erasing all of July’s gains. The Uncertainty Index rose to 92, the highest level since October 2020. Inflation remains the top issue among small business owners with 24% reporting it as their top operating issue, down one point from July. Forty percent of small business owners reported job openings they could not fill in August, up two points from July. Labor costs, reported as the single most important problem for business owners, was unchanged at 9%, four points below the highest reading of 13% reached in December 2021. The full Small Business Economic Trends report and NFIB Jobs Report are available for further analysis. The full quarterly report is available here.

Topics:

Economy

Labor

Research

SBET

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