The NFIB Small Business Optimism Index continues to rise with a slight increase of 0.5 points in August to 100.8, nearly three points above the 52-year average of 98. An increase in those expecting real sales to be higher is the biggest contributor. For the second straight month, labor quality remains as the top issue for small businesses, with 21% of respondents reporting it as their single most important problem, the same percentage as July’s report. 

“Optimism increased slightly in August with more owners reporting stronger sales expectations and improved earnings,” said NFIB Chief Economist Bill Dunkelberg. “While owners have cited an improvement in overall business health, labor quality remained the top issue on Main Street.”  

Key findings include: 

• Labor quality as small business owners’ top issue stays consistent from July’s report at 21%, marking the second straight month as the single most important issue for small business. 

• The Uncertainty Index fell four points in August to 93 but remains well above the historical average. The greatest contribution to the decline was a decrease in uncertainty about financing expectations and planned capital expenditures.  

• The net percentage of owners expecting higher real sales volumes rose six points from July to a net 12% (seasonally adjusted), which was the greatest contributor to the increase in small business optimism. 

• The net percentage of business owners raising average selling prices fell three points from July to a net 21% (seasonally adjusted), the lowest recorded reading this year.  

• Construction, manufacturing, and transportation industries have seen the most difficulty filling open positions. Nearly half (49%) of small businesses in the construction industry had unfilled job openings, down six points from July and 11 points below last year’s reading.  

• NFIB’s August job report shows a seasonally adjusted 32% of all small business owners reported job openings they could not fill in August, down one point from July. The last time unfilled job openings fell below 32% was in July 2020.  

Labor quality has been a significant challenge for small businesses in 2025. Overall, 53% of owners reported trying to hire in August. Forty-three percent (81% of those hiring or trying to hire) of owners reported few or no applicants for open positions (down five points). 

Taxes also remain a top concern for small business owners, with 17% ranking taxes as their top problem, unchanged from July and the second biggest problem overall.  

Supply chain issues, while still a significant concern, are down 10 points from July, with 54% of small business owners reporting that supply chain disruptions have affected their business to some degree.  

The NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986. Survey respondents are randomly drawn from NFIB’s membership. The report is released on the second Tuesday of each month. This survey was conducted in August 2025.