US, April Small Business Confidence Index Falls for 4 Consecutive Months

'Hiring' Rate Drops to Lowest Level in 4 Years

Tariffs Increase Anxiety Among Small Business Owners

In April, when President Trump announced reciprocal tariffs on the world under the name 'Day of Liberation', the US small business confidence index fell for the fourth consecutive month. The percentage of business owners reporting they are hiring also dropped to the lowest level in four years, indicating a cooling US labor market.

On the 13th (local time), the National Federation of Independent Business (NFIB) announced that the small business optimism index fell by 1.6 points to 95.8 in April. This is below the 51-year average of 98. The index peaked at 105.10 last December.

As President Trump's erratic trade policies begin to impact the US economy, anxiety among small business owners is rising. The NFIB's uncertainty index fell to 92 last month.

The percentage of small business owners expecting better business conditions in the future decreased by 6 percentage points to 15%.

In April, 34% of small business owners reported they were hiring for vacant positions, a 6-point decrease from March. This is the lowest figure since January 2021 during the pandemic. The percentage of owners hoping to hire skilled workers also fell by 4 points to 29%. Small businesses are a major driver of job growth in the US.

As employers are reluctant to hire, the labor market has slowed. However, the layoff rate remains low. Economists expect job growth to slow significantly this year as tariffs negatively impact the economy.

NFIB's Chief Economist Bill Dunkelberg said, "Expectations for improved business conditions and job vacancy indicators had the greatest impact on the decline in the optimism index in April."

Guest Reporter Kim Jung-ah kja@hankyung.com