Improvement in Small Business Hiring Challenges as Economy Remains Robust

Small Businesses Expand their Workforce despite High Interest Rates: CBIZ Small Business Employment Index Report

Small businesses across the country may be finding it easier to hire new employees, as reported by the CBIZ Small Business Employment Index. The index showed a 0.17% increase in February, indicating continued strength in the U.S. economy despite high interest rates.

Small businesses often struggle to retain workers as they are unable to offer higher salaries or additional benefits such as health insurance. Despite these challenges, the CBIZ index monitors hiring trends among thousands of companies with 300 or fewer employees across the country and has found that unexpected strength in the U.S. economy has allowed small businesses to steadily expand their workforce during February.

According to Anna Rathbun, the chief investment officer of CBIZ, about 20% of companies in the index increased their staffing levels in February, while 60% kept their headcounts the same and 20% reduced staff numbers. Certain industries saw hiring gains, including administrative and support services, arts and recreation, and technology and life sciences, while industries like accommodation and food services, insurance, and utilities saw decreases.

Regional differences were also noted, with slight hiring increases seen in the West, Southeast, and Central regions compared to a slight decline in the Northeast region. This trend mirrors broader market data showing that U.S employers added 275,000 jobs in February surpassing expectations. The robust job growth highlights the resilience of the U.S economy despite high interest rates.

The revised gain of 229,000 jobs in January was followed by an unexpected increase of 146

Leave a Reply

The Consumer Advice Center is contemplating legal action against Temu. Previous post Temu Under Fire: Consumer Protection Group Contemplates Legal Action against Chinese Marketplace
Stellantis Reaches Agreement for 1,520 Workers to Voluntarily Exit Next post Stellantis and Metalworking Unions Agree on Voluntary Departures of 1,520 Workers from Mirafiori in Turin