This decline is indicative of weakening in the labor market, though the just-above-average level still suggests a balanced labor market. Designed by Magnific

SACRAMENTO, CA (MPG) - The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, released their April Jobs Report showing a softening in the employment market as the Small Business Employment Index fell 1.2 points to 100.4. This is the second month in a row the Index declined. The current reading is now below the 2025 average of 101.2, but slightly above the historical average of 100.0. This decline is indicative of weakening in the labor market, though the just-above-average level still suggests a balanced labor market.

NFIB’s Jobs Report is a national survey of NFIB-member small-business owners, not broken down by state. The NFIB Small Business Employment Index is a new measure of the current state of the small business labor market. The Index integrates actual and planned changes in employment and employee compensation into a singular data point. A higher Index reflects an overall tighter labor market; a lower Index reflects an overall weaker labor market.

 “Although the Jobs Report slipped a bit last month, the Index didn’t fall below its historical average, meaning the small business economy seems to be showing a resiliency some thought it didn’t have. This is due in no small part, I believe, to Congress making the 20% Small Business Deduction permanent,” said John Kabateck, state director for NFIB in California. “Sad to report that the California Legislature has been no help at all, erecting roadblock after roadblock to common sense policies. Proposals such as Senate Bill 84, giving small business owners a period to fix a workplace violation before getting sued, and Senate Bill 981, giving the peoples’ elected representatives a say in regulations adopted by state agencies (imagine that!), aren’t getting any traction. Policymakers, especially in an election year, would be wise to heed the cries and calls of their constituents, instead of Sacramento special interests.”

NFIB Chief Economist Bill added “Even in a month with a weaker Employment Index, over half of small business owners reported hiring or trying to hire. A lack of qualified applicants has been a major hurdle for Main Street, and employers are struggling to fill open positions.”

Other report findings include unfilled job openings remain above the historical average of 24%. 29% of small business owners have openings for skilled workers (up two points), and 13% have openings for unskilled labor (up one point). A seasonally adjusted net 13% of owners plan to create new jobs in the next three months, up one point from March and close to the average of net 11%, while a net 30% reported raising compensation in April, down three points from March. A net 18% (seasonally adjusted) of owners plan to raise compensation in the next three months, unchanged from March.

Keep up with the latest California small business news at www.nfib.com. Follow them on X @NFIB_CA and on Facebook @NFIB.CA.

For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.