The National Federation of Independent Business (NFIB) reported on March 6 that job creation among small businesses weakened in February, reaching its highest level since last August. The announcement was accompanied by commentary from Suzanne Budge, NFIB’s Idaho state director, who addressed the implications for local and national policy.
The monthly Jobs Report is significant as it reflects hiring trends and challenges faced by small business owners across the country. The findings suggest ongoing difficulties in filling open positions and rising labor costs, which could impact economic recovery efforts.
Budge said, “The prior few months’ Jobs Reports had given some hope of the start of an economic revival along the Main Streets of the nation, but the latest report showed that hope might be a bit premature.” She added, “Two things need to happen ASAP. Congress needs to make the 20% Small Business Deduction permanent and here at home, the Idaho Legislature needs to bury costly ideas of saddling small business owners with an increase in the minimum wage and giving local governments the power to levy their own sales taxes.”
According to 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.”
The report found that 38% of small business owners had job openings they could not fill in February—an increase from January and the highest since August 2024. Job openings were most prevalent in retail, construction, and manufacturing sectors. Labor quality was cited as a top operating problem by 19% of respondents, while labor costs were identified as a major issue by 12%. A net 33% reported raising compensation during February.
NFIB’s Jobs Report is based on a national survey conducted each month among its members. The typical member employs between one and nine people with annual gross sales around $500,000. The organization has advocated for small businesses nationwide since its founding in 1943.
