Golden State Today

The National Federation of Independent Business (NFIB) has released its latest Jobs Report, indicating a decline in job creation for February. This marks the highest reading since last August, raising concerns about the fragility of small business economic recovery.

John Kabateck, NFIB's California State Director, commented on the report's findings: “NFIB’s last few Jobs Reports and Small Business Optimism Indexes had given everyone a little hope that a small business economic recovery might finally be taking hold, but the latest Jobs Report shows the hope very fragile.” He emphasized two necessary actions to sustain this hope: Congress must prevent the expiration of the 20% Small Business Deduction at year-end, and the California Legislature should avoid imposing additional tax and regulatory measures.

The NFIB Jobs Report is published monthly and surveys NFIB-member small-business owners nationwide. Typically, these businesses employ between one and nine people with gross sales around $500,000 annually.

Bill Dunkelberg, NFIB Chief Economist, noted that over half of Main Street firms attempted to hire in February but faced challenges. "Meanwhile, consistent compensation increases continue to put pressure on small business owners as they look for qualified workers to fill their many open positions."

Key findings from the report include:

- 38% of small business owners reported unfilled job openings in February, an increase from January and the highest level since August 2024.

- Job openings were most prevalent in retail, construction, and manufacturing sectors; agriculture and finance sectors had fewer openings.

- Labor quality was identified as a primary operating issue by 19% of business owners.

- Labor costs rose as a concern for 12% of owners.

- A net 33% reported raising compensation in February; plans to raise compensation decreased slightly.

NFIB continues its advocacy for small businesses across America. For more information on their activities or updates on California's small-business news, visit nfib.com or follow them on social media platforms.