Report: Small business optimism up, but worries percolate

The National Federation of Independent Business Small Business Optimism Index rose 0.8 points in November to 99 — above its 52-year average of 98.

But that optimism comes with an ominous note: The business climate remains a large concern, and hiring remains a big challenge. On the former, the net percent of owners expecting better business conditions, the survey found, fell 5 points from October to a net 15%. Expectations for better business conditions have fallen by 32 points since January.

On jobs, meanwhile, a seasonally adjusted 33% of all small business owners in the U.S. reported job openings they could not fill in November, according to the NFIB’s monthly jobs report. That is up 1 point from October and the first increase seen since June. Also, unfilled job openings remain well above the historical average of 24%, the report states, with 56% of owners hiring or trying to hire in November. Of those, 89% reported few or no qualified applicants for the vacant positions. A seasonally adjusted net 19% of owners reported plans to create new jobs in the next three months — up 4 points from October and the highest reading of the year. The last time hiring plans reached this level was in December 2024, the report states. 

The monthly Small Business Optimism Index tracks business owners’ sentiment on hiring, sales, economic outlook and expansion plans, among other key components. An increase in those expecting sales to be higher contributed the most to the rise in the Optimism Index, the organization states. 

“Florida’s small businesses are feeling more optimistic as owners are expecting higher sales during the holiday months,” NFIB Florida Executive Director Bill Herrle says in the release. “The tight labor market is still a challenge, but small businesses are determined to hire and create more local jobs.”

Highlights from the latest report include: 

• In November, the net percent of owners increasing average selling prices rose 13 points since October to a net 34%. That’s the highest reading since March 2023 and the largest monthly jump in the survey’s history. 
• In November, 21% of small business owners cited labor quality as their single most important problem, a decrease of 6 points from October’s sudden increase. Labor quality ranked as the top problem facing small business owners — 6 points ahead of inflation, which was the second-highest ranked problem at 15%, and 3 points higher than October’s ranking. 
• The net percent of owners expecting a higher volume of sales rose 9 points over October’s score to a net 15%. This measure contributed the most to the overall increase in the Optimism Index.

The NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since 1973 and monthly surveys since 1986. Survey respondents are randomly drawn from NFIB’s estimated 600,000 members, according to its website.