FOR IMMEDIATE RELEASE
Contact: John Kabateck, California State Director, john@kabstrat.com
or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

SACRAMENTO, Calif., March 7, 2025—The latest monthly Jobs Report released yesterday by the National Federation of Independent Business (NFIB), the nation’s leading small business association, showed job creation weakening in February, its highest reading since last August.

“NFIB’s last few Jobs Reports and Small Business Optimism Indexes had given everyone a little hope that a small business economic recovery might finally be taking hold, but the latest Jobs Report shows the hope very fragile,” said John Kabateck, state director for NFIB in California. “Two things need to happen to keep the hope alive. Congress needs to keep the 20% Small Business Deduction from expiring at the end of the year, and the California Legislature must resist its worse impulses to impose more grand tax and regulatory schemes on legal, medical, and environmental issues.”

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

“Over half of Main Street firms reported hiring or trying to hire in February, but with little success. Meanwhile, consistent compensation increases continue to put pressure on small business owners as they look for qualified workers to fill their many open positions.”

Highlights from the Latest Jobs Report

• 38% (seasonally adjusted) of small business owners reported job openings they could not fill in February, up three points from January and the highest reading since August 2024.
• Job openings were the highest in the retail, construction, and manufacturing sectors, and the lowest in the agriculture and finance sectors. Job openings in construction were up one point from last month, but down seven points from the prior year.
• The percent of small business owners reporting labor quality as their top operating problem rose one point from January to 19%. Labor costs reported as the single most important problem for business owners rose three points from January to 12%, only one point below the highest reading of 13% reached in December 2021. The last time labor costs were ranked this high was February 2023.
• Seasonally adjusted, a net 33% of small business owners reported raising compensation in February, unchanged from January. A net 18% (seasonally adjusted) plan to raise compensation in the next three months, down two points from January.

Keep up with the latest California small-business news at www.nfib.com. Follow us on X @NFIB_CA and on Facebook @NFIB.CA.

###

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 California
915 L St. Ste C-411
Sacramento, CA 95814
916-448-9904
NFIB.com
X: @NFIB_CA
Facebook: @NFIB.CA