The NFIB Small Business Optimism Index increased by 0.8 points in November, reaching 99.0 and staying above its 52-year average of 98. Six out of ten components of the index rose, while three declined and one remained unchanged. The most significant factor contributing to the rise was an increase in owners expecting higher real sales.
Despite this increase in optimism, small business owners continue to face workforce challenges. “Although optimism increased, small business owners are still frustrated by the lack of qualified workers,” said NFIB Chief Economist Bill Dunkelberg. “Despite this, more firms still plan to create new jobs in the near future.”
Noah Finley, Illinois State Director for NFIB, commented on local conditions: “Heading into the holiday season, small business optimism climbed in November in anticipation of higher sales even as workforce shortages continue to constrain Main Street businesses,” he said. “This Christmas, it’s important that we shop local and support our small-business community.”
The Uncertainty Index also rose by 3 points from October to 91, driven mainly by increased uncertainty about capital expenditure plans over the next three to six months.
Other key findings from the November survey include a notable jump in price increases among small businesses. The net percentage of owners raising average selling prices climbed 13 points from October to a net 34%, marking both the highest reading since March 2023 and the largest monthly increase recorded by the survey.
Labor quality remained a top concern for business owners: 21% cited it as their most important problem—down six points from October but still ranking ahead of inflation (15%) and taxes (14%). Additionally, government regulations were reported as a primary issue by 10% of respondents.
Job openings remain difficult to fill; a seasonally adjusted 33% of owners reported unfilled positions in November—an increase from October and above historical averages. Of those hiring or trying to hire during November, nearly nine out of ten found few or no qualified applicants. Plans for job creation reached their highest level since December 2024 with a net seasonally adjusted 19% planning new hires over the next three months.
Inflation pressures persist within the sector; not only did price hikes become more widespread but compensation plans are also on the rise—a net seasonally adjusted 24% intend to raise pay within three months.
Capital expenditures have slowed somewhat: only half (52%) reported making such outlays in the last six months—a decrease from October—with spending primarily focused on equipment purchases and facility improvements.
Supply chain disruptions continued to affect operations for many; 64% noted some degree of impact—up four points compared with October—with seven percent describing effects as significant.
Evaluations regarding overall business health were mixed: while most described their condition as good or fair, just over one-tenth rated it excellent and five percent called it poor.
Expectations for better business conditions fell five points compared with October; this metric has dropped substantially—by thirty-two points—since January.
The report is based on data collected through NFIB’s regular monthly survey conducted among randomly selected members nationwide each month since 1986.
