Small business owners are feeling a mix of hope and headache right now. While optimism is up, finding the right people to hire remains a major challenge. Let's dive into the details from the latest National Federation of Independent Businesses (NFIB) report.
Bank of America's business banking President, Sharon Miller, shared insights on 'The Claman Countdown,' highlighting the costs and positive outlook for small and mid-sized businesses heading into 2026.
The NFIB's November report reveals a slight uptick in small business optimism, with the index rising 0.8 points to reach 99. This keeps it above the 52-year average of 98. The increase was fueled primarily by expectations of higher real sales volumes, which jumped 9 points to a net 15%.
But here's where it gets controversial... Despite the positive sentiment, business owners are still struggling with a lack of qualified workers. NFIB chief economist, Bill Dunkelberg, noted this frustration, even though many firms still plan to create new jobs soon.
The labor market is a key concern. Labor quality was the single most important problem for 21% of small business owners in November, though this was down 6 points from October. The NFIB highlighted that job openings were above average all year, and compensation has increased, but hiring hasn't kept pace.
Interestingly, concerns about labor quality surpassed inflation, which was the second-biggest worry at 15%, up 3 points from October.
Supply chain issues are still a factor. Nearly two-thirds of small business owners, 64%, reported that supply chain disruptions were affecting their business, an increase of 4 points from October.
And this is the part most people miss... The report also revealed that the net percentage of owners raising their average selling prices increased significantly, jumping 13 points from October to a net 34%. This is the highest reading since March 2023 and the biggest monthly increase ever recorded in the survey. Looking ahead, about 30% of small businesses plan to raise prices in the next three months.
What does this mean for the future? While optimism is up, expectations for better business conditions have declined significantly since January. Only 13% of owners thought it was a good time to expand their business in November.
What are your thoughts? Do you think the challenges of finding qualified workers will outweigh the positive trends? Share your opinions in the comments below!
