PHOENIX (July 31, 2025) – NFIB’s July jobs report found that 33% (seasonally adjusted) of small business owners reported job openings they could not fill in July, down three points from June and the lowest level since December 2020, though still well above the monthly historical average of 25%. In fact, 21% of small business owners cited labor quality as their single most important problem in July, up five points from June and the largest monthly increase since August 2022.

“The challenge of finding qualified workers is easing overall but still remained significant for many small business owners in July,” said Chief Economist Bill Dunkelberg. “The easing labor market pressures are also reflected in fewer firms raising compensation.”

Although state-specific data is unavailable, NFIB State Director Chad Heinrich said, “Small business owners recognize the importance of offering competitive wages and benefits to attract top talent. Unfortunately, the right applicants are not walking in the door. That adds pressure to employers and employees as they try to meet their customers’ needs.”

Overall, 57% of small business owners reported hiring or trying to hire in July, down one point from June. Forty-eight percent (84% of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill, down two points. Twenty-nine percent of owners reported few qualified applicants for their open positions and 19% reported none.

Twenty-nine percent have openings for skilled workers (down one point) and 12% have openings for unskilled labor (down one point).

Job openings were the highest in the construction, wholesale, and transportation industries, and the lowest in the finance and agriculture industries.

A seasonally adjusted net 14% of owners plan to create new jobs in the next three months, up one point from June. This remains above the historical average of net 11%.

Seasonally adjusted, a net 27% of small business owners reported raising compensation in July, down six points from June. A net 17% (seasonally adjusted) plan to raise compensation in the next three months, down two points from June. Labor costs reported as the single most important problem for business owners decreased one point from June to 9%.

Click here to view the entire NFIB Jobs Report.