Small Business Hiring Rises in October
NFIB survey data show owners increasing hiring and compensation while labor shortages persist.
Updated on Nov. 6, 2026 in Employment
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Small business hiring increased in October 2026, according to the National Federation of Independent Business. The share of owners reporting hiring or trying to hire rose 5 points to 56%, and plans to create jobs climbed to 18%.
Why it matters
Persistent difficulty finding qualified workers remains a barrier to hiring for small firms, even as overall hiring activity improves. Rising compensation plans suggest employers are competing harder for the workers they need.
The Small Business Employment Index rose 0.2 points to 100.8 in October, still below the 2025 average of 101.2 but above its historical average of 100.0. Survey figures do not yet show whether this gain will hold in coming months.
The players
National Federation of Independent Business (NFIB)
A nonprofit advocacy organization representing small and independent business owners across the United States, known for its monthly Small Business Optimism Index.
The details
Owners reporting hiring or trying to hire rose 5 points to 56%, and 48% said they had few or no qualified applicants for open positions. A net 29% raised compensation in October, and a net 24% plan further raises over the next three months.
Timeline
October 2026: small business hiring and compensation increased in the NFIB survey.
Next three months from October 2026: owners plan to raise compensation.
2027: Oregon legislative session, for which the business environment is cited as a policy priority.
Market Landscape
The October reading of 100.8 is above the NFIB's historical average of 100.0 but still below the 2025 average of 101.2, marking a modest rebound rather than a full recovery. Small firms continue to compete for scarce qualified workers, which keeps pressure on wages and hiring plans.
With 48% of owners reporting few or no qualified applicants, job seekers at small firms may find more openings but also more competition for skilled roles. Workers could see wage increases as 24% of owners plan further compensation raises in the coming months.
The takeaway
Small business hiring is recovering, but the labor shortage is the binding constraint. Workers with in-demand skills are likely to see the strongest opportunities through the coming months.
What happens next
Owners' planned compensation increases over the next three months will be tested in subsequent NFIB survey releases.
Further reading
Explore more on Employment trends affecting small firms nationwide.
Live Poll
In your area, is it getting easier or harder for employers to find qualified workers?
