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Challenges in small business hiring are starting to improve due to a stable economy

Byeditor

Mar 26, 2024

Hiring woes for small businesses may be starting to ease, according to the CBIZ Small Business Employment Index. In February, there was a seasonally adjusted increase of 0.17%, indicating that small businesses are expanding their workforces in the strong U.S. economy despite high interest rates. Small businesses often struggle to retain workers due to their inability to offer higher salaries or benefits like health insurance. The CBIZ index tracks hiring trends among thousands of companies with 300 or fewer employees nationwide.

In February, 20% of companies in the index hired more staff, while 60% made no changes to their headcounts and 20% cut staff. Some industries, such as administrative and support services, arts, entertainment, recreation, and technology and life sciences, saw hiring gains. On the other hand, industries like accommodation and food services, insurance, and utilities experienced decreases in hiring.

Regionally, the West, Southeast, and Central regions saw slight increases in hiring, while the Northeast region saw a slight decline. This trend in small business hiring aligns with the broader market trend. In February, U.S. employers added 275,000 jobs, surpassing expectations and demonstrating the resilience of the U.S. economy in the face of high interest rates. This job growth in February was higher than the previous month’s revised gain of 229,000 jobs.

By editor

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