Missouri small business hiring picks back up after months of decline

Published 2:54 pm Friday, August 7, 2026

JEFFERSON CITY — Small business hiring plans strengthened in July after four straight months of decline, even as owners reported growing difficulty finding qualified workers, according to the National Federation of Independent Business (NFIB) monthly jobs report.

NFIB’s Small Business Employment Index rose to 102.1 in July from 100.2 in June, putting the reading above both the 2025 average of 101.2 and the historical average of 100.0. The index tracks small business hiring activity and expectations nationally.

Thirty-six percent of small business owners, seasonally adjusted, reported job openings they could not fill in July, up 4 percentage points from June and the highest share since June 2025. Among those, 31% had openings for skilled workers, up 4 points, while 14% had openings for unskilled labor, up 2 points.

“Labor quality or availability as the top concern for Main Street rose in July, with employment growth falling behind the pace of economic growth,” NFIB Chief Economist Bill Dunkelberg said in a statement. “Most of the primary spending driving the economy is heavily concentrated in big projects like new data centers for AI. Hiring plans suggest that small business owners are expecting a surge in business that will require more workers. While the labor force remains stagnant, hiring will be sufficient to keep the unemployment rate about the same as compensation inches higher.”

NFIB State Director Brad Jones said the labor shortage is a challenge playing out among small businesses across Missouri.

“Our members want to hire, but they are having a hard time finding the right workers,” Jones said. “This is a challenge we’re seeing across the state. When small business owners can’t fill their open positions, that can cause a ripple effect of tough choices, like cutting hours, reducing services, or raising prices to offset increased compensation costs.”

A seasonally adjusted net 20% of owners said they plan to create new jobs over the next three months, up 9 points from June and the highest reading since October 2022, sitting 9 points above the historical average. Actual hiring activity moved in the opposite direction, however, falling 1 point from June, with 61% of owners reporting they hired or tried to hire in July.

Among those hiring or trying to hire, 85% reported few or no qualified applicants for open positions, unchanged from June. Thirty-two percent reported few qualified applicants, up 5 points, while 19% reported none, down 5 points.

Labor quality or availability was cited as the single most important problem by 27% of small business owners in July, up 8 points from June and 15 points above the historical average of 12%. Reports of labor costs as the top concern were unchanged, with 8% of owners citing that issue.

Compensation measures also rose in July. A seasonally adjusted net 31% of owners reported raising compensation, up 3 points from June, while a net 19% said they plan to raise compensation over the next three months, up 2 points. Both figures remain above their historical averages.

NFIB has advocated on behalf of small and independent business owners in Washington and all 50 state capitals since its founding in 1943. The organization describes itself as nonprofit, nonpartisan, and member-driven.