Oregon’s small business labor market continues to face challenges compared to the national picture, according to Anthony Smith, Oregon State Director for the National Federation of Independent Business (NFIB). The latest NFIB Jobs Report shows the Small Business Employment Index rose by nearly one point to 103.5, which is 2.3 points higher than the 2025 average and 3.5 points above the historical average.
“Oregon’s labor market is weaker than what we’re seeing around the rest of the country. Our unemployment rate is much higher than the national average and job openings are near a five-year low. The Legislature could have spent the last five weeks working to turn things around, but instead, we’re sending a message to rest of the nation that Oregon is closed for business,” Smith said.
Smith also criticized recent legislative action: “By further decoupling Oregon from the federal tax code, SB 1507 nixes 100% bonus depreciation (Sec. 168k), a mechanism by which a business can purchase a piece of equipment or machinery and deduct the full cost of the purchase in the year it was placed in service rather than spreading that deduction out over the full depreciation schedule, which can be up to 20 years.”
The NFIB Jobs Report is based on a national survey of small-business owners who are members of NFIB. The report does not provide state-level breakdowns. The Small Business Employment Index combines actual and planned changes in employment and employee compensation into one figure, with higher numbers indicating a tighter labor market.
Bill Dunkelberg, Chief Economist at NFIB, commented on broader trends: “February’s numbers show a growing tightness in the small business labor market. While the overall market remains in balance, employers need more skilled workers to fill open positions.”
Key findings from February’s report include that seasonally adjusted net hiring plans dropped by four points from January to a net 12%, marking their lowest level since May 2025 but still close to their typical net 11%. Fifteen percent of owners named labor quality as their top concern—a figure that has declined for four consecutive months and reached its lowest point since April 2020. Labor costs remained steady as a primary issue for nine percent of respondents.
Additionally, seasonally adjusted data showed that 34% of small business owners reported raising compensation in February—the highest share since March 2025—while plans to raise compensation in coming months held steady at a net 22%.
NFIB has represented America’s small and independent businesses for over eight decades as an advocacy organization operating nationwide.
