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In October, 32% of small business owners said they had job openings they could not fill, the same as in September. Before August, the last time unfilled jobs were this high was December 2020. About 28% of owners have openings for skilled workers, unchanged from September, while 11% have openings for unskilled workers, down 2 points.

A net 15% of small business owners plan to create new jobs in the next three months, down 1 point from September. This is the first drop since hiring plans started rising in May 2025. Many businesses want to hire but are struggling to find qualified workers.

Overall, 56% of small businesses reported hiring or trying to hire in October, down 2 points from September. Of those hiring, 88% said they found few or no qualified applicants, slightly down from last month. Thirty-one percent reported few qualified applicants for their open positions, up 2 points, while 18% had none, down 3 points.

Labor quality is a growing concern, with 27% of owners saying it is their biggest problem, up 9 points from September and the highest since November 2021. Concerns about labor quality are highest in construction, transportation, and professional services, and lowest in finance and agriculture. Nearly half of construction businesses listed labor quality as their top problem, compared to only 13% in finance.

The share of owners who see labor costs as their top problem fell 3 points to 8%. A net 26% of owners reported raising wages in October, down 5 points from September, and 19% plan to raise pay in the next three months, unchanged from last month.