JUNEAU, Alaska, July 8, 2025—The latest monthly Small Business Optimism Index from the National Federation of Independent Business (NFIB) has shown a slight decrease in optimism among small business owners in Alaska, falling by 0.2 points to a total of 98.6 for the month of June. This figure remains just above the 51-year average of 98, reflecting ongoing stability in the small business sector.
Thor Stacey, the Alaska State Director of NFIB, attributed this slight decline to a mix of recent legislative developments and persistent concerns facing local entrepreneurs.
“Making the Small Business Deduction permanent on the Fourth of July lifted a huge worry off the minds of Main Street entrepreneurs everywhere,” said Stacey.
He expressed gratitude toward Alaska’s congressional delegation for securing this vital support for small businesses, emphasizing the relief it provided in ensuring business sustainability as the year comes to a close.
However, he pointed out that small business owners in Alaska are now confronted with new challenges, notably compliance with Measure 1, which came into effect at the beginning of the month, dampening the celebratory mood.
The NFIB’s Small Business Optimism Index is considered a critical indicator of the health and welfare of the nation’s small businesses. This index is closely monitored by various policymakers, including members of the Federal Reserve and Congressional leaders.
The significance of small businesses is underscored by the fact that they employ half of all American workers and are responsible for generating more net new jobs than their larger corporate counterparts. The typical NFIB member business employs between one and nine people and reports annual gross sales of approximately $500,000.
From the NFIB Chief Economist Bill Dunkelberg, the statement highlighted that while small business optimism remained steady in June, there has been a notable decrease in uncertainty about future conditions.
“Taxes remain the top issue on Main Street, but many others are still concerned about labor quality and high labor costs,” Dunkelberg noted, reflecting the multifaceted challenges faced by small businesses.
The latest findings from the NFIB reveal several key trends. The net percentage of owners expecting better business conditions fell to a net 22% after a three-point drop from May. Historically, this reading remains favorable when compared to the 51-year average of just 3%.
Similarly, the proportion of owners anticipating an increase in real sales volumes also decreased by three points to a net 7%.
In terms of labor concerns, 16% of small business owners identified labor quality as their primary challenge, a figure that remained unchanged from the previous month. The last time reported concerns about labor quality dropped below this threshold was back in April 2020.
Conversely, the percentage of owners citing inflation as their most pressing issue has decreased to 11%, down three points from May. This represents the lowest level of inflation concern since September 2021 and suggests that inflation pressures are easing for many small businesses.
To stay updated on the latest small business news in Alaska, visit www.nfib.com and follow NFIB Alaska on X at @NFIB_AK.
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