According to the latest report from the National Federation of Independent Business (NFIB), the Small Business Optimism Index in the United States surged to an 11-month high in July.
The NFIB’s latest survey released on August 11th showed that the small business confidence index in the United States increased by 2.4 points to 99.8 in July, marking the highest level since August 2025 and surpassing its 52-year average of 98.0.
Of particular note is the significant increase in the percentage of small business owners planning to increase staff in the next three months, reaching 20%, the highest level since October 2022.
However, while businesses want to hire, they may not necessarily find suitable candidates. In July, as many as 36% of small business owners indicated that they still have unfilled job vacancies, representing a 4-percentage point increase from the previous month and marking the highest level since June 2025. Industries ranging from construction, agriculture to those requiring skilled workers are all facing the dilemma of “businesses wanting to hire, but unable to find people”.
Labor shortages have once again become the most pressing issue for small business owners in the United States. The survey shows that 27% of small business owners have listed “labor quality or availability” as the most critical operational issue, significantly higher than the historical average of 12%. In contrast, the importance of inflation has decreased, with only 14% of business owners in July considering it their primary concern, a 7-percentage point drop from June.