Small business owners grew more optimistic about the future in March, according to a survey from the National Federation of Independent Businesses. The NFIB’s Small Business Optimism Index increased 2.4 points in March to 98.2. Despite the increased optimism, uncertainty remained about expanding or making capital investments in the coming months, the report showed. The NFIB’s Uncertainty Index increased six points to 81 in March. “The good news is that small business owners are feeling more optimistic about the future for the first time in a long time,” said Matt Everson, NFIB state director in Iowa. “However, there is still a lot of uncertainty out there tied to the pandemic.” Finding qualified workers remained a top issue for small business owners, a problem Everson said could slow the state’s economic recovery. Other findings in the report released this week include:

• Seven of the 10 index components improved, while three declined.
• Sales expectations over the next three months improved.
• Earnings trends over the past three months declined.
• 42% of owners reported job openings that could not be filled, a record high reading.
• Owners continue to have difficulty finding qualified workers to fill jobs as they compete with increased unemployment benefits and the pandemic keeping some workers out of the labor force.
• A net 28% of owners reported raising compensation (up three points), the highest level in the past 12 months. A net 17% plan to raise compensation in the next three months, down two points from February.
• 7% of owners cited labor costs as their top business problem; 24% said labor quality was their top business problem.