NFIB report shows Colorado small business hiring challenges persist

DENVER — The labor market for small businesses softened in April as the National Federation of Independent Business Small Business Employment Index fell 1.2 points to 100.4, marking the second consecutive monthly decline.

The reading fell below the 2025 average of 101.2 but remained slightly above the historical average of 100.0, according to NFIB’s April Jobs Report.

Thirty-four % of small business owners reported job openings they could not fill in April, up 2 points from March and the highest level since June 2025. The share remains above the historical average of 24%.

Twenty-nine % of owners reported openings for skilled workers, while 13% reported openings for unskilled labor.

“Even in a month with a weaker Employment Index, over half of small business owners reported hiring or trying to hire,” said NFIB Chief Economist Bill Dunkelberg. “A lack of qualified applicants has been a major hurdle for Main Street, and employers are struggling to fill open positions.”

NFIB Colorado State Director Michael Smith said employers continue to face challenges in finding workers.

“Main Street Coloradans want to hire,” Smith said. “Employers are having a difficult time finding the right applicants.”

A seasonally adjusted net 13% of owners said they plan to create new jobs in the next three months, up 1 point from March and close to the historical average of 11%.

Overall, 53% of small business owners reported hiring or trying to hire in April, up 1 point from March. Among those hiring, 46% said they received few or no qualified applicants.

Labor quality remained a top concern for business owners. Eighteen % identified labor quality as their single most important problem in April, up 3 points from March and above the historical average of 12%. Nine % cited labor costs as their top problem, down 1 point from March.

A net 30% of owners reported raising compensation in April, down 3 points from March. A net 18% said they plan to raise compensation in the next three months, unchanged from March.