In its latest monthly Jobs Report, the National Federation of Independent Business (NFIB) introduced a new Small Business Employment Index, which combines actual and planned changes in employment and employee compensation into one measure.
According to the report, 31% of small business owners nationally had job openings they could not fill in January, a decrease of two percentage points from December. This figure remains above the historical average of 24%. Openings for skilled workers were reported by 25% of respondents, down three points from the previous month, while 10% reported openings for unskilled labor, unchanged from December.
Patrick Connor, NFIB Washington State Director, commented on the findings and their implications for local businesses. “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.
The NFIB Jobs Report surveys members nationwide but does not provide state-specific data. The January results are based on responses from 959 randomly selected NFIB member firms collected through January 30.
NFIB Chief Economist Bill Dunkelberg noted trends in wages and hiring plans: “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.”
The new Employment Index dropped nearly one point in January to 101.6 after reaching its highest level since March 2025 during December. Despite this decline, it remains above both its historical average of 100 and slightly higher than its average for 2025 at 101.2.
Labor quality continues to be a concern among small business owners; however, only 16% cited it as their top issue in January—a drop of three percentage points from December—marking the third straight month this figure has declined. The problem was most frequently cited by owners in construction, manufacturing, and professional services sectors and least often by those in wholesale and finance industries.
More information about NFIB’s activities can be found at www.nfib.com or via social media channels X @NFIB_WA or Facebook @NFIB.WA.
