Published
December 12, 2025
The latest MetLife & U.S. Chamber of Commerce Small Business Index shows that employers’ concerns about recruiting and retaining workers have been rising over the past year.
The survey also shows that inflation is stubbornly lingering as the top concern for small businesses, despite receding slightly from record highs.
This quarter, the Index shows that small businesses' concern about their ability to retain employees (17%) and attract talent (14%) is rising. Roughly one in four (26%) small business owners select one of these “talent” items as their top concern.
Concerns Over Talent Rise
Concerns over attracting talent has risen eight percentage points compared to this time last year (was 6% in Q4 2024). Similarly, retaining employees has risen five percentage points over the same time period (was 12% in Q4 2024).
“This quarter’s Index makes it clear: attracting and retaining employees is a growing concern for today’s small businesses," said Bradd Chignoli, executive vice president and head of Regional Business & Workforce Engagement at MetLife.
Notably, the percentage of small businesses that selected either retaining employees or attracting talent has risen from 16% in Q4 2024 to 26% this quarter. [1]
Lower levels of concern about talent also existed three years ago. In Q4 2022, 11% of small businesses considered employee retention a top concern and just 8% said attracting talent was a top concern.
Inflation Concerns Small Retailers Most
This quarter’s survey also shows that inflation remains the top concern among small business owners: 45% say it is the biggest challenge they face right now. However, concern has remained below the 50% threshold for a third consecutive quarter and is on par with Q2 2022 (44%).
“Inflation remains the top challenge, and workforce concerns are rising," said Tom Sullivan, Senior Vice President of Small Business Policy at the U.S. Chamber of Commerce. “Yet, small businesses are showing resilience, even amid uncertainty exacerbated by the longest government shutdown in history, when this survey was in the field."
But all sectors are not equal when it comes to inflation concerns. In fact, small retailers are the most worried about inflation with 53% saying it’s a top concern. Manufacturers are least concerned about inflation (38% said it was a top concern). In the middle: 46% in the services industry and 42% in professional services said inflation is their top concern.
Small businesses also report that inflation is impacting their holiday plans. Over half (58%) expect to raise prices, and 52% anticipate lower revenue due to inflation.
Minority-owned businesses (55%) and small businesses with 20-500 employees (53%) also express higher levels of concern over inflation. Smaller small businesses are less concerned about inflation: Both 44% of medium (5-19 employees) and the smallest small businesses (1-4 employees) cite inflation as a top concern.
Similarly, concerns about revenue saw a slight uptick this quarter from 26% to 30% and remain relatively high. Revenue concerns now sit at the second highest level since 2021, only beat by Q1 2025 (35%).
[1]In Q4 2024, this option was asked as “Lack of applicants for job openings”.
About the author
Thaddeus Swanek
Thaddeus is a senior writer and editor with the U.S. Chamber of Commerce's strategic communications team.
