WASHINGTON — U.S. small-business owners became more optimistic in July, with confidence reaching its highest level in almost a year, according to the latest National Federation of Independent Business survey.

The NFIB's Small Business Optimism Index increased 2.4 points to 99.8, moving above its long-term average of 98.0. The improvement was supported by stronger hiring intentions among business owners.

However, the survey also revealed a growing challenge for American companies: finding workers.

Around 36% of small-business owners reported unfilled job openings, the highest level since June 2025. Businesses reported shortages involving both skilled and unskilled workers.

Labor quality and availability were identified as the top concern by 27% of business owners, significantly above the historical average.

At the same time, inflation worries eased. Only 14% of small-business owners identified inflation as their biggest concern in July, down from 21% in June.

The improvement in sentiment offers a positive signal for the U.S. economy, particularly because small businesses account for a significant share of American employment and economic activity.

Yet uncertainty remains elevated. The NFIB's uncertainty index increased in July, with ongoing geopolitical tensions contributing to concerns about the business environment.

For American companies, the combination of stronger hiring plans and persistent labor shortages could shape business decisions during the second half of 2026.

The latest survey suggests that U.S. small businesses are becoming more confident, but finding enough qualified workers remains one of their biggest obstacles.