NFIB survey: Small business owners worry about labor shortage, rising costs

Small business optimism is shrinking in the U.S.

The National Federation of Independent Business announced Friday that its monthly optimism index fell by 0.9 points in October to 98.2, and its uncertainty index decreased seven points to 67.

One of 10 index components improved; seven declined; and two remained the same.

The index also showed that small business owners expecting a stronger climate over the next six months fell four points to a net negative of 37%. That indicator continued to decline over the past 90 days to its lowest level in nine years. 

Among the issues facing small businesses:

• 49% of owners report they have job openings that could not be filled,  although that was a decrease of two points from September. 
• And, the number of reports of positive profit trends dropped three points to 17%.
• Among small business owners reporting lower profits, 31% said it was due to the rise in the cost of materials, while 9% said it was due to labor costs. Other factors included lower prices and higher taxes or regulatory costs.

NFIB Connecticut Director Andrew Markowski said small business owners continue to be uncertain about the future in the Nutmeg State.

“We are now more than a year and a half into the COVID-19 pandemic, and our small business owners have an overwhelming message: They are still uncertain about the future here in Connecticut,” Markowski said. “One of the biggest problems for our mom and pop shops is the inability to hire qualified workers to fill a number of open positions.”