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Local Comment on NFIB’s Latest Jobs Report

Local Comment on NFIB’s Latest Jobs Report

February 5, 2026

New component integrates actual and planned changes in employment and compensation

FOR IMMEDIATE RELEASE
Contact: Patrick Connor, Washington State Director, patrick.connor@nfib.org,
or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

OLYMPIA, Wash., Feb. 5, 2026—From NFIB Washington State Director Patrick Connnor on today’s release of the monthly Jobs Report from the National Federation of Independent Business (NFIB), which inaugurated a new component, a Small Business Employment Index. The new index integrates actual and planned changes in employment and employee compensation into a singular data point.

In January, 31% (seasonally adjusted) of small business owners reported job openings they could not fill, down 2 points from December. Unfilled job openings remain above the historical average of 24%. Twenty-five percent have openings for skilled workers (down 3 points), and 10% have openings for unskilled labor (unchanged).

“We expect unfilled job openings will remain above their historical average if the Washington State Legislature has anything to say about it,” said Connor. “With current proposals that would raise workers’ compensation premiums, increase health-care costs, impose a capital gains tax on small business stock, and implement a so-called ‘Millionaire Tax’ — that will impact small firms based on business earnings, not an owner’s take home pay — Washington state is set to become one of the most hostile environments for small business in the nation.” Click here to read Connor’s latest legislative report.

NFIB’s Jobs Report is a national survey of NFIB-member small-business owners, not broken down by state. The January numbers were based on 959 respondents to a random sample of NFIB member firms, surveyed through 1/30/2026.

From NFIB Chief Economist Bill Dunkelberg

“Main Street continues to search for qualified workers for open positions. Owners reported increased wages over the last three months, alongside plans to increase them in the next three months as well.”

Highlights from the Latest NFIB Jobs Report

  • The Employment Index fell nearly 1 point in January to 101.6, erasing about half of the large gain in December, which reached the highest level since March 2025. The Index remains above the historical average of 100, and just slightly above the 2025 average of 101.2. In January, 31.
  • In January, 16% of small business owners cited labor quality as their single most important problem, down 3 points from December. This is the third consecutive month that labor quality reported as the single most important problem, has declined.
  • Labor quality reported as the single most important problem was the highest in the construction, manufacturing, and professional services industries, and lowest in wholesale and finance.

 

Keep up with the latest Washington state small business news at www.nfib.com or on X @NFIB_WA or on Facebook @NFIB.WA

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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 Washington
111 – 21st Avenue Southwest
Olympia, WA 98501
360-786-8675
NFIB.com
Twitter: @NFIB_WA
Facebook: @NFIB.WA

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