The NFIB Small Business Optimism Index remained relatively steady in June, slipping just 0.2 of a point to 98.6, but still above the 51-year average of 98. The biggest contributor to the Index decline was a substantial increase in reported excess inventory. The Uncertainty Index significantly decreased, falling five points from May to 89. Taxes are once again the single most important problem for small business owners, with 19% reporting taxes as their chief concern. The last time taxes reached 19% was in July 2021.  

“Small business optimism remained steady in June while uncertainty fell,” said NFIB Chief Economist Bill Dunkelberg. “Taxes remain the top issue on Main Street, but many others are still concerned about labor quality and high labor costs.”  

Key findings include: 

• A net negative 5% (seasonally adjusted) of owners viewed current inventory stocks as “too low” in June, down six points from May. This signals a net increase in inventories, with 7% reporting inventories “too low” in June compared to 8% in May. Twelve percent reported current inventories “too high” in June compared to 7% in May. This component contributed the most to the Optimism Index’s decline. 

• Small business owners reporting labor quality as the single most important problem for businesses remained at 16%, unchanged from May. The last time complaints about labor quality fell below 16% was in April 2020. 

• Fifty percent of small business owners reported capital outlays in the last six months, down six points from May and the lowest reading since August 2020. 

• Inflation as the single most important problem for small business owners fell to 11%, down three points from May and the lowest reading since September 2021.  

• Labor quality as the single most important problem remains at 16%, steady with May’s report. The last time labor quality fell below 16% was April 2020.  

• A net negative 5% of all owners (seasonally adjusted) reported higher nominal sales in the past three months, up eight points from May. This is the highest reading since January 2023 and the largest monthly jump since April 2021. 

• Seasonally adjusted, a net 33% reported raising compensation, up seven points from May and the largest monthly increase since January 2020. 

As seen in NFIB’s Monthly Jobs Report, 36% (seasonally adjusted) of small business owners reported unfilled job openings in June, up two points from May. More business owners reported hiring or trying to hire in June, with 58% of owners looking to fill open positions, up three points from May. Of those hiring, 86% reported few or no qualified applicants for positions they were trying to fill. 

Taxes are once again the greatest concern for small business owners. Labor quality at 16% and inflation at 11% are the second and third biggest issues for small businesses, according to the June Small Business and Economic Trends report, with labor quality remaining steady and inflation significantly dropping from May. Poor sales are also on the rise for small businesses, climbing one point as the top issue to 10%, its highest reading since March 2021.  

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 June 2025.