Why Small Businesses Are Struggling to Find Qualified Workers
Washington, Monday, 14 September 2026.
August data shows 82% of hiring small businesses found few or no qualified applicants, making labor quality their top operational challenge over inflation and taxes.
Optimism Cools Amidst Hiring Barriers
The National Federation of Independent Business (NFIB) reported that in August 2026, 56% of small business owners attempted to hire, yet 82% of those actively recruiting found few or no qualified applicants for open positions [1][2]. This persistent labor quality issue has elevated workforce availability to the top operational concern for 23% of respondents, outpacing both taxes and inflation which were cited by 16% each [3]. Concurrently, 35% of small business owners held unfilled job openings in August 2026, a figure that remains 11 percentage points above the historical average [1][2]. This hiring difficulty persists even as the NFIB Small Business Optimism Index dipped to 98.7 in August 2026, representing a 1.1-point decrease from the previous month [2][3]. Based on the reported decrease, the index in July 2026 stood at 99.8, marking the highest level since August 2025 before this recent cooling period [2][5].
Economic Headwinds and Sales
Beyond labor constraints, small businesses face mounting pressure from weakening sales and persistent inflation. During the three months leading up to August 2026, a seasonally adjusted net negative 9% of owners reported higher nominal sales, which is the lowest reading since November 2025 [4][5]. Inflation was identified as the single most important problem by 16% of owners in August 2026, a 2-point increase from the prior month, tying it with taxes as the second-highest concern [3][4]. Supply chain disruptions continue to affect operations, with 62% of small business owners reporting impacts in August 2026, although this represents a slight 1-point decrease from July 2026 [2][4]. These compounding factors have strengthened pressure on profitability, with positive profit trends declining 3 points from July to a net negative 19% [3].
Strategic Workforce Solutions
In response to these domestic shortages, some experts advise evaluating international recruitment as a component of a broader workforce strategy rather than an immediate fix [1]. EB3.Work, a recruitment platform, published guidance on September 14, 2026, noting that the EB-3 visa program facilitates permanent employment-based immigration but requires a multi-year processing timeline [1]. The process includes Department of Labor PERM labor certification and mandated U.S. labor market testing, meaning it cannot be used to avoid considering qualified U.S. workers [1]. Broader labor market data from the U.S. Bureau of Labor Statistics reported 7.3 million total job openings in July 2026, including significant gaps in manufacturing and accommodation services [1]. Meanwhile, the August 2026 employment report showed payrolls increased by 162,000, with private payroll income rising 0.67% month-over-month [5].
Outlook for Main Street
Looking ahead, business owners remain cautious regarding expansion and hiring commitments. A seasonally adjusted net 17% of owners plan to create new jobs in the three months following August 2026, down 3 points from July [4]. While the Uncertainty Index fell 2 points to 89 in August 2026, it remains significantly higher than the historical average of 68 [2][4]. Chief Economist Bill Dunkelberg noted that while expectations for the overall economy have dimmed, Main Street owners remain largely positive in the health of their own businesses [2][5]. As the economy navigates these challenges, the focus remains on balancing immediate operational needs with long-term workforce planning.