Small Business Optimism Ticks Up as Labor Issues Persist

Small businesses sentiment rose last month despite ongoing worries about labor shortages.

That’s according to the latest edition of the Small Business Optimism Index from the National Federation of Independent Business (NFIB), released Tuesday (Sept. 9) and showing the index rising 0.5 points to 100.8 for August.

The number of business owners anticipating higher sales climbed 6 points to 12%, with the survey’s uncertainty index down 4 points to 93, still well above the historical average.

“While owners have cited an improvement in overall business health, labor quality remained the top issue on Main Street,” Bill Dunkelberg, chief economist at the NFIB, said in a news release.

The survey found that 32% of business owners had positions they were unable to fill last month. The last time unfilled openings dropped below 32% was in July of 2020.

Labor shortages were especially pronounced among construction businesses, with nearly half saying they had vacancies they couldn’t fill. The overall share of businesses that said labor quality was their top issue was 21%, unchanged from the prior month.

The findings come amid an ongoing immigration crackdown, something that economists say has helped lower the pool of available workers and hindered job growth.

Meanwhile, recent PYMNTS Intelligence research has found that confidence among small and medium-sized businesses (SMBs) not only held steady during the second quarter but actually achieved record highs.

According to the PYMNTS Intelligence August SMB Growth Report, “Small Business Growth Monitor Q2 2025: From Headwinds to Hope on Main Street,” 82% of small businesses said they expect to survive at least another two years.

That’s the highest level of optimism since the survey began three years ago, and it came in the midst of escalating tariffs and steep operating costs. But SMBs aren’t only surviving, they’re gaining confidence about the future.

“This psychological shift matters,” PYMNTS wrote. “Optimistic business owners are more likely to invest in hiring, training and marketing, all of which drive performance. They’re also more inclined to take calculated risks, such as entering new markets or testing new products.”

Micro-SMBs, or businesses with annual revenues below $150,000 and often seen as most vulnerable to economic upheaval, are showing increased confidence, the report found. In March, 68% of those businesses expressed confidence in their long-term survival. By June, that figure had risen to 75%.

“The gains suggest that even the smallest firms are finding ways to adapt,” PYMNTS added. “Many cited sharper marketing efforts, stronger community outreach and incremental technology upgrades as the levers that keep customers engaged and revenues flowing.”

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