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Small-business hiring plans rise in Colorado despite worker shortages
ColoradoBiz Staff //August 7, 2026//
Hiring plans show net percent (increase minus decrease) in the next three months, seasonally adjusted. Courtesy of NFIB.
Hiring plans show net percent (increase minus decrease) in the next three months, seasonally adjusted. Courtesy of NFIB.
Small-business hiring plans rise in Colorado despite worker shortages
ColoradoBiz Staff //August 7, 2026//
In Brief:
- NFIB Small Business Employment Index rose to 102.1 in July
- 20% of owners plan to add jobs in next three months
- 36% of owners report unfilled job openings, highest since June 2025
- Michael Smith highlights labor shortage challenges in Colorado
Small-business hiring plans increased in July, but employers continued to report difficulty finding qualified workers, according to the National Federation of Independent Business.
The NFIB Small Business Employment Index rose to 102.1 in July from 100.2 in June, ending four consecutive months of declines. The July reading was above the 2025 average of 101.2 and the historical average of 100.
A seasonally adjusted net 20% of owners planned to add jobs during the next three months, up 9 percentage points from June. Hiring plans reached their highest level since October 2022.
However, 36% of owners reported job openings they could not fill, up 4 points and the highest reading since June 2025. Openings included 31% for skilled workers and 14% for unskilled workers.
“The labor shortage is a major challenge for small-business owners across the country and right here in Colorado,” NFIB Colorado State Director Michael Smith said. “When small-business owners can’t fill their open positions, there’s a ripple effect of undesirable choices they have to consider, including reducing hours, cutting services or pausing expansion plans.”
About 61% of owners reported hiring or trying to hire in July. Of those businesses, 85% said they received few or no qualified applicants.
Labor quality or availability was the top concern for 27% of owners, up 8 points from June. Labor costs were the leading concern for 8%.
A net 31% of owners reported raising compensation, up 3 points from June. A net 19% planned to increase compensation during the next three months, up 2 points.
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