In Salem, Oregon, the National Federation of Independent Business (NFIB) has released its latest Jobs Report, highlighting challenges faced by small businesses in the state. The Small Business Employment Index has remained essentially flat, registering 100.3 in May, a slight decline from April’s 100.4. This marks the third consecutive month of decline, with the current reading falling below the 2025 average of 101.2, though it remains slightly above the historical average of 100.0.
Rising Labor Costs
Anthony Smith, NFIB Oregon State Director, emphasized the impact of rising labor costs on small business owners, noting that these costs are at an all-time high. “With labor costs at an all-time high, it’s understandable that small business owners are putting new job creation and hiring plans on the back burner,” Smith stated. He urged state and federal policymakers to prioritize the small business economy to help regain hiring and business expansion traction, and to avoid imposing new costs on businesses.
NFIB Chief Economist Bill Dunkelberg echoed these concerns, pointing out that labor costs have reached the highest reading in the survey’s history. Fourteen percent of business owners reported labor costs as their single most important problem, a 5-point increase from April. Despite these challenges, compensation measures have remained steady for now.
Impact on Hiring Plans
The report also revealed that a seasonally adjusted net 9% of small business owners plan to create new jobs in the next three months, down 4 points from April. This marks the lowest level since May 2020, with plans to hire now below the historical average of a net 11%. Additionally, 13% of small business owners cited labor quality as their single most important problem, down 5 points from April and marking the lowest level since December 2016.
Smith highlighted the importance of voter engagement, noting that Oregonians recently rejected Ballot Measure 120, which would have imposed additional costs on businesses. “Oregonians need leaders who will listen to them – not endlessly raise their taxes,” he remarked.
The NFIB continues to advocate for small and independent business owners across the nation, emphasizing the need for policies that support economic growth and job creation.
Original reporting: NFIB (National Federation of Independent Business) — read the source article.
