The National Federation of Independent Business’s March Jobs Report shows the Small Business Employment Index fell 1.9 points to 101.6. Despite the decline, the current reading remains above the 2025 average of 101.2 and the historical average of 100.

In March, 32 percent (seasonally adjusted) of small-business owners reported job openings they could not fill, down 1 point from February. Unfilled job openings remain above the historical average of 24 percent. Twenty-seven percent have openings for skilled workers (down 1 point), and 12 percent have openings for unskilled labor (up 2 points).

“While small businesses are not hiring extensively, they continue to face difficulties related to labor cost and quality,” NFIB Chief Economist Bill Dunkelberg said. “Despite the current stagnant employment growth, economic conditions could change rapidly.”

NFIB Colorado Director Michael Smith said one particular fee is a significant culprit among the challenges faced by small businesses, and he called on the Colorado Legislature to do something about it.

“Filling open positions remains a big challenge for small businesses here in Colorado. Costly credit-card-swipe fees exacerbate this challenge, eroding Main Street’s ability to hire, raise wages and invest in their communities,” Smith said. “In fact, Colorado merchants paid an estimated $217 million in swipe fees on sales taxes alone in 2024. That’s why we are calling on the Legislature to pass SB 134 to give small business owners much-needed relief by eliminating sales taxes from swipe fees.”

The NFIB said a seasonally adjusted net 12 percent of business owners plan to create new jobs in the next three months, unchanged from February and close to the average of net 11 percent.

Overall, 52 percent of owners reported hiring or trying to hire in March, down 2 points from February. Forty-five percent of owners (87 percent of those hiring or trying to hire) reported few or no qualified applicants for the positions they were trying to fill (down 1 point). Twenty-two percent reported few qualified applicants (down 3 points), and 23 percent reported none (up 2 points).

In March, 15 percent of small-business owners cited labor quality as their single most important problem, unchanged from February and above the historical average of 12 percent. The last time labor quality reported as the single most important problem was below 15 percent was in December 2016. While labor quality has declined over the past few months, reports of labor costs as the single most important problem have gradually increased. Ten percent of business owners reported labor costs as their single most important problem, up 1 point from February.

Seasonally adjusted, a net 33 percent of small-business owners reported raising compensation in March, down 1 point from February. A net 18 percent (seasonally adjusted) plan to raise compensation in the next three months, down 4 points from February and the lowest reading since July 2025. Despite these declines, planned and actual labor-compensation levels remain above their historical averages.

Go online to www.nfib.com to view the entire NFIB Jobs Report.