• Thu. Jun 6th, 2024

Easing Small Business Hiring Woes Indicate a Strong Economy


Mar 26, 2024

The latest report from the CBIZ Small Business Employment Index indicates that hiring challenges for small businesses may be starting to ease. In February, the index reported a seasonally adjusted increase of 0.17%, reflecting a strong U.S. economy despite high interest rates. Small businesses often struggle to retain employees due to their inability to offer competitive salaries and benefits like health insurance.

The CBIZ index monitors hiring trends among thousands of companies with fewer than 300 employees across the country. According to Anna Rathbun, chief investment officer of CBIZ, the U.S. economy has demonstrated unexpected resilience in the face of high interest rates. Small businesses have been steadily expanding their workforces, with 20% of companies in the index adding more staff in February.

Some industries are faring better than others in terms of hiring, with gains seen in sectors like administrative and support services, arts, entertainment, and recreation, and technology and life sciences. On the other hand, industries such as 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 mirrors the broader market trends, with U.S. employers adding 275,000 jobs in February, surpassing expectations and showcasing the economy’s resilience in the face of high interest rates. This growth in job numbers represents an increase from the previous month’s gain of 229,000 jobs.

By editor

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