The Uncertainty Index rose 11 points to 103, the highest reading recorded.
What it means:Research shows job openings have fallen to 34% andthe Uncertainty Index hit a record high, increasing by 11 points to 103 in September. This means small businesses are spending less on inventory as they wait to see what the future of the economy will be post-election.
Our take: Between the record-high reading of the Uncertainty Index, small business owners continue to have trouble finding qualified applicants. Thirty-four percent of small business owners reported job openings they could not fill, leaving many questioning whether future business conditions will improve.
The Uncertainty Index rose 11 points to 103, the highest level recorded. Inflation continues to be the top issue among small business owners, with 23% reporting it as their top operating issue, down one point from August. With the overall job market softening, fewer small firms have job openings available. However, 34% percent of small business owners reported job openings they could not fill in September, down six points from August and the lowest reading since January 2021. A net 23% (seasonally adjusted) plan to raise compensation in the next three months, up three points from August.
Labor costs, reported as the single most important problem for business owners, was unchanged at 9%, four points below the highest reading of 13% reached in December 2021.
The full Small Business Economic Trends report and NFIB Jobs Report are available for further analysis.
