Oregon Small Businesses Face Cost Pressure as State Jobs Lag Behind Last Year’s Count

Small-business confidence is slipping nationally, and in Oregon, local warning signs include higher costs and uncertainty faced by Main Street Employers. At the same time, the state’s job market remains stuck below last year’s level.

Small Business Confidence Drops Across the US

A national NFIB Small Business Optimism Index shows optimism fell to 95.3, below the long-term average, while uncertainty stayed high, continuing to stick well above its historical average.

The Optimism Index fell 0.6 points in May to 95.3, below its 52-year average of 98.0. Inflation was the #1 problem for 18% of owners, while 70% reported some supply-chain disruption. Planned capital spending also fell to the lowest level since March 2009.

This decline has filtered through to Oregon, where residents are dealing with state-specific issues.

Oregon’s Unemployment Levels Contribute to Small Business Confidence Drop

NFIB’s Oregon report repeats the May NFIB figures and highlights fuel-price pressure, inflation, price hikes, supply-chain issues, and weak capital spending.

NFIB Oregon State Director Anthony Smith noted that Oregon’s small-business economy is going through a “turbulent patch.” He said policymakers should avoid “unforced errors” that increase costs for Main Street businesses.

At the same time, the Oregon Employment Department reports that unemployment in the state has been stuck at 5.2% for five straight months, and payroll employment is still below last year’s level.

Payroll employment remained 9,100 jobs below May 2025 and 20,900 jobs below the September 2024 peak.