The National Federation of Independent Business reported on May 7 that its April Jobs Report indicates a softening in the employment market, with the Small Business Employment Index dropping by 1.2 points to 100.4. This marks the second consecutive monthly decline and brings the index below the 2025 average of 101.2, though it remains slightly above its historical average of 100.0.
This development is significant for small businesses as it suggests a weakening labor market, even though current levels still indicate some balance between job openings and available workers. In April, seasonally adjusted data showed that 34% of small business owners had job openings they could not fill, an increase from March and the highest level since June of last year.
Chief Economist Bill Dunkelberg said, “Even in a month with a weaker Employment Index, over half of small business owners reported hiring or trying to hire. A lack of qualified applicants has been a major hurdle for Main Street, and employers are struggling to fill open positions.”
NFIB State Director Jason Espinoza addressed local impacts: “Unfortunately, New Mexico’s small businesses are not immune from the hiring challenges we see across the country. The mismatch between applicants’ experience and the skills needed for the job posting is making it difficult for business owners to hire and expand.”
A net total of 13% (seasonally adjusted) plan to create new jobs within three months—slightly higher than March’s figures—while more than half reported attempting to hire in April. However, many cited difficulties finding qualified candidates: forty-six percent noted few or no suitable applicants for their open positions.
In terms of compensation trends, seasonally adjusted data show that a net 30% raised pay in April (down three points from March), while plans to increase pay over coming months remained steady at net 18%. Labor quality was cited as the most important problem by nearly one-fifth of respondents—a figure well above historical averages.
The National Federation of Independent Business – New Mexico advocates for small businesses through legislative engagement and educational support; it bolsters economic activity by issuing policy updates and economic reports; founded in 1943 as a nonprofit organization according to its official website.
