What it means:  With a new administration on the horizon, the November Small Business Optimism Index rose eight points to 101.7, the highest point since June 2021 and the first time it has been above the 50-year average of 98 in 34 months. Small Business owners are hopeful that tax and regulation policies will encourage economic growth. 

Our take: “The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners. Main Street also became more certain about future business conditions following the election, breaking a nearly three-year streak of record high uncertainty,” said NFIB Chief Economist Bill Dunkelberg. 

The November Jobs and Small Business Economic Trends reports were released with an influx of optimism about the uncertainty leading up to the election. Following October’s record high of 110, the Uncertainty Index fell 12 points to 98. Inflation remains the top issue among small business owners, with 20% reporting it as their top operating issue, down three points from October.  

With the overall job market struggling to fill open positions, fewer small firms have job openings available. Thirty-Six percent of all small business owners reported job openings they could not fill in November, up one point from October. A net 28% (seasonally adjusted) plan to raise compensation in the next three months, up five points from October. 

Labor costs, reported as the single most important problem for business owners, rose three points to 11%, only two points below the highest reading of 13% reached in December 2021. 

The full Small Business Economic Trends report and NFIB Jobs Report for November are now available.