Small business job openings fall to lowest level since 2020 in Colorado

DENVER — Small business job openings declined in May while concerns about labor costs reached a record high, according to the latest jobs report from the National Federation of Independent Business.

NFIB’s Small Business Employment Index registered 100.3 in May, down slightly from 100.4 in April. The index has declined for three consecutive months and now sits below the 2025 average of 101.2, though it remains slightly above the historical average of 100.0.

A seasonally adjusted 29% of small business owners reported job openings they could not fill, down 5 percentage points from April and the lowest level since May 2020. Twenty-seven percent reported openings for skilled workers, down 2 points, while 9% reported openings for unskilled labor, down 4 points.

“Concerns about rising labor costs increased significantly to the highest reading in the survey’s history,” NFIB Chief Economist Bill Dunkelberg said. “Small business owners are facing mounting pressure to retain workers, and many firms are navigating costly new state mandates.”

A seasonally adjusted net 9% of owners said they plan to create new jobs in the next three months, down 4 points from April and the lowest level since May 2020. The figure is below the historical average of 11% net.

Overall, 55% of owners reported hiring or trying to hire in May, up 2 points from April. Among those employers, 84% said they received few or no qualified applicants. Twenty-four percent reported few qualified applicants, while 22% reported none.

Labor quality was cited as the most important business problem by 13% of owners, down 5 points from April and the lowest level since December 2016. At the same time, 14% of owners identified labor costs as their top concern, up 5 points from April and the highest level recorded in the survey.

NFIB Colorado State Director Michael Smith said the findings reflect ongoing concerns among business owners about operating costs, including credit card processing fees and changes to state tax policies.

“The survey’s findings underscore Main Street Coloradans’ disappointment in Governor Polis‘ veto of swipe fee reform,” Smith said. “As our members continue to report growing concerns about costs, policymakers should be looking for ways to reduce the burdens on Main Street.”

Compensation trends remained largely unchanged. A seasonally adjusted net 31% of small business owners reported raising compensation in May, up 1 point from April. A net 18% plan to raise compensation in the next three months, unchanged from April.