• Tue. Jun 4th, 2024

Small business hiring challenges subside as economy remains robust


Mar 26, 2024

Small businesses are starting to see some relief from hiring challenges, according to the latest report from the CBIZ Small Business Employment Index. In February, there was a seasonally adjusted increase of 0.17%, signaling that small businesses are able to expand their workforce despite the high interest rates that have been impacting the economy. However, smaller companies still face difficulties in retaining employees, as they may not be able to offer competitive salaries or benefits like health insurance.

The CBIZ index monitors hiring trends among thousands of small businesses with 300 or fewer employees across the country. According to Anna Rathbun, chief investment officer of CBIZ, the unexpected strength of the U.S. economy has allowed small businesses to steadily grow their workforce during February, with 20% of companies hiring more staff, 60% maintaining their headcounts, and 20% cutting staff.

While some industries, such as administrative and support services, arts, entertainment, and technology, have seen hiring gains, others like accommodation and food services, insurance, and utilities have experienced declines. Regionally, the West, Southeast, and Central areas have seen slight increases in hiring, while the Northeast has seen a slight decrease.

Overall, the small business hiring trend mirrors the broader market, as U.S. employers added 275,000 jobs in February, surpassing expectations and demonstrating the resilience of the economy despite high interest rates. This increase in job growth from January’s numbers highlights the ongoing strength of the U.S. labor market.

By editor

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