NFIB has released its January Jobs Report, introducing the new Small Business Employment Index. The index combines actual and planned changes in employment and employee compensation into a single measure to reflect the state of the small business labor market.
“While our state’s small businesses are starting the year on a more optimistic note, the Index highlights that workforce challenges remain a primary hurdle,” said NFIB Illinois State Director Noah Finley. “As we see labor quality difficulties ease slightly across the country, this data will be essential for Illinois policymakers to recognize the need for a friendlier environment to invest, hire, and grow.”
Chief Economist Bill Dunkelberg added, “Main Street continues to search for qualified workers for open positions. Owners reported increased wages over the last three months, alongside plans to increase them in the next three months as well.”
The Employment Index dropped by nearly one point in January to 101.6 after reaching its highest level since March 2025 in December. Despite this decline, it remains above both its historical average of 100 and just above last year’s average of 101.2.
According to the report, 31% of small business owners had job openings they could not fill in January—a decrease from December but still higher than historic averages. Openings for skilled workers fell slightly while those for unskilled labor stayed steady.
A net 16% of owners plan to create new jobs over the next quarter, showing a slight dip from December figures. Half of all surveyed owners hired or attempted to hire in January—the lowest rate since May 2020—and most continued facing difficulty finding qualified applicants.
Labor quality was identified as the main problem by 16% of respondents; this concern is declining but persists most strongly in construction and manufacturing sectors compared with finance and wholesale industries.
A net 32% of owners reported raising compensation last month—a modest increase—while plans for future raises eased somewhat compared with previous reports.
The full NFIB Jobs Report is available online through their official website.
