A new National Federation of Independent Business report shows Iowa’s small business labor market softened slightly in January, though it remains stronger than historical averages.
NFIB’s January Jobs Report introduced the new Small Business Employment Index, which combines actual and planned changes in hiring and wages into a single measure. The index slipped nearly one point to 101.6, giving back about half of December’s gains but staying above the long-term average of 100.
NFIB Iowa State Director Logan Shine says the dip highlights ongoing pressure on small businesses facing high property taxes and inflation, calling on lawmakers to pursue tax reforms to help employers remain competitive.
Thirty-one percent of small business owners reported job openings they could not fill, while 50 percent said they were hiring or trying to hire, the lowest level since May 2020. Despite easing labor pressures, wages continue to rise, with nearly one-third of owners reporting higher compensation in January.
