The February Jobs Report from the National Federation of Independent Business (NFIB) shows that the Small Business Employment Index increased by nearly one point to 103.5. This figure is higher than both the 2025 average and the historical average, indicating continued tightness in the small business labor market.
According to the report, 33% of small business owners had job openings they could not fill, a rise from January’s numbers. Openings for skilled workers also increased, while unfilled positions for unskilled labor remained unchanged.
“February’s numbers show a growing tightness in the small business labor market,” said Chief Economist Bill Dunkelberg. “While the overall market remains in balance, employers need more skilled workers to fill open positions.”
NFIB State Director Michael Smith added: “Our members are telling us they want to hire. But many of them are still struggling to find the right applicants. The Colorado Legislature has considered several proposals that would exacerbate the workforce challenges, including the effort to undermine the Labor Peace Act. We’re urging the Legislature to resist these proposals and promote greater opportunity for Coloradans.”
A net 12% of owners plan to create new jobs over the next three months, which is down from January and marks the lowest level since May 2025. Despite this decrease, hiring plans remain close to their recent averages.
The report found that 54% of owners were hiring or trying to hire in February—an increase compared with January—but many reported difficulties finding qualified candidates. Of those hiring or attempting to hire, 85% noted few or no qualified applicants.
Labor quality was cited as the most important problem by 15% of owners—a slight decline—and labor costs remained steady at 9%. Compensation increases were reported by a net 34% of small business owners in February, reaching their highest level since March 2025.
The NFIB supports small businesses through legislative advocacy and resources nationwide and in Colorado specifically (official website). The organization works on policy initiatives intended to support economic growth and provides compliance guidance and research for its members (official website).
