PHOENIX, Ariz., April 3, 2025—Job openings that can’t be filled is still a big problem for small businesses, according to the latest Job Report released today by the National Federation of Independent Business (NFIB), which showed 40% of small business owners reporting in March they’re struggling to find help, up two points from February.

“Arizona’s small businesses continue to face rising labor costs and staffing shortages,” said Chad Heinrich, state director for NFIB in Arizona. “While the issues of labor cost and staffing are not in their direct control, the Arizona Legislature is working on key policies that will improve the business climate in Arizona for years to come; issues like eliminating the personal property tax for Arizona’s smallest businesses and requiring transparency on investor-funded lawsuits that use the legal system for profit are key issues for small business survival.”

NFIB’s Jobs Report is released the first Thursday of every month. It is a national survey of NFIB-member small-business owners, not broken down by state. The typical NFIB member employs between one and nine people and reports gross sales of about $500,000 a year.

From NFIB Chief Economist Bill Dunkelberg

“With qualified workers in short supply, job openings stayed solid on Main Street in March. As spring progresses, fewer small business owners plan to create new positions, but they are looking to fill current vacancies.”

Highlights from the Latest Jobs Report

• Job openings were the highest in the construction, transportation, and manufacturing sectors, and the lowest in the agriculture and wholesale sectors. Job openings in construction were up ten points from last month, and up 12 points from March 2024. Openings in the transportation sector rose 23 points from February to 53%.
• The percent of small business owners reporting labor quality as their top operating problem was unchanged from February at 19%.
• Labor costs reported as the single most important problem for business owners fell one point in March to 11%, only two points below the highest reading of 13% reached in December 2021.
• Seasonally adjusted, a net 38% of small business owners reported raising compensation in March, up five points from February. A net 19% (seasonally adjusted) plan to raise compensation in the next three months, up one point from February.

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Keep up with the latest Arizona small-business news at www.nfib.com. Follow us on X @NFIB_AZ.

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For more than 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.

NFIB Arizona
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