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California Comment on Latest NFIB Jobs Report

California Comment on Latest NFIB Jobs Report

December 4, 2025

Legislators need to make paying off state’s UI loans their top priority

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

SACRAMENTO, Calif., Dec. 4, 2025— From NFIB California State Director John Kabateck on today’s release of the monthly Jobs Report from the National Federation of Independent Business (NFIB), showing that 33% (seasonally adjusted) of small business owners reported job openings they could not fill in November, up 1 point from October and the first increase since June. Unfilled job openings remain above the historical average of 24%.

“We will shortly release our small business legislative agenda for the 2026 half of the session and topping that list will be a call for state lawmakers to pay off, or significantly down, California’s unemployment insurance (UI) loans it took out from the federal government during the pandemic. It’s worth reminding everyone that only business owners pay UI taxes, so having to calculate this debt has a big impact on whether or not to hire more employees or cut back the hours of existing employees or, worst of all, to lay off workers. It can’t be a badge of honor, especially going into an election year, that California is the only state that has not paid Uncle Sam back the money it took to keep its UI Trust Fund solvent and unemployment checks going to those in need of them.”

NFIB’s Jobs Report 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

“The economy has continued to grow steadily despite the recent government shutdown. On Main Street, job growth continues to be constrained by a lack of qualified employees.”

Highlights from the Latest NFIB Jobs Report

  • The last time hiring plans reached this level was in December 2024.
  • In November, 21% of small business owners cited labor quality as their single most important problem, down 6 points erasing most of October’s sudden increase.
  • Labor costs, reported as the single most important problem by small business owners, remained at 8%.
  • Seasonally adjusted, a net 26% of small business owners reported raising compensation in November, unchanged from October. A net 24% (seasonally adjusted) plan to raise compensation in the next three months, up 5 points from October. The last time plans to raise compensation were at this level was in December 2024.

 

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

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For over 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

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