• Fri. Apr 19th, 2024

Small businesses experience less difficulty in hiring as the economy remains robust

BySamantha Johnson

Mar 27, 2024
Small businesses experience less difficulty in hiring as the economy remains robust

The CBIZ Small Business Employment Index reported a seasonally adjusted increase of 0.17% in February as the U.S. economy remains strong despite high interest rates. This positive development indicates that hiring woes may be easing for small businesses across the country.

Small businesses often struggle to retain workers due to their inability to offer higher salaries or additional benefits like health insurance. The CBIZ index monitors hiring trends among thousands of companies with 300 or fewer employees nationwide.

According to Anna Rathbun, chief investment officer of CBIZ, the U.S. economy has exhibited unexpected strength in the current high interest rate environment. This has enabled small businesses to steadily expand their workforce during the month of February.

In February, 20% of companies in the index increased their staff, while 60% maintained their current headcounts. Additionally, 20% of companies decreased their staff numbers during the same period.

Certain industries have seen better hiring results than others. Sectors such as administrative and support services, arts, entertainment and recreation, as well as technology and life sciences reported hiring gains, while industries like accommodation and food services, insurance, and utilities experienced decreases.

Regionally, the West, Southeast, and Central regions saw slight increases in hiring, while the Northeast region saw a slight decline in employment growth.

These trends in the small business sector are reflective of the broader market, as U.S. employers added 275,000 jobs in February, surpassing expectations and demonstrating the resilience of the U.S. economy despite high interest rates. February’s job growth marked an improvement from the revised gain of 229,000 jobs in January.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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