Small Businesses Defy Expectations: Unveiling CBIZ Employment Data and Insights on Resilient Hiring Amid High-Interest Rates

Struggles in hiring for small businesses appear to be improving

Small businesses have shown unexpected strength in the current high-interest rate environment, despite their challenges in retaining employees due to low salaries and benefits. The CBIZ Small Business Employment Index monitors hiring among thousands of businesses with 300 or fewer employees nationwide, and it showed a 0.17% increase in hiring among small businesses in February.

The U.S. economy has also displayed resilience, with small businesses steadily expanding their workforces while maintaining headcounts for the most part. Anna Rathbun, the Chief Investment Officer of CBIZ, attributes this strength to the adaptability of small businesses and their ability to find creative solutions to challenges.

Certain industries have seen more hiring activity than others, with administrative and support services, arts and entertainment, and technology and life sciences experiencing gains. On the other hand, accommodation and food services, insurance, and utilities have witnessed decreases in employment. The West, Southeast, and Central regions saw slight increases in regional hiring patterns while the Northeast region experienced a slight decline.

Small business hiring aligns with overall job growth in the U.S., with February seeing an increase of 275,000 jobs added by employers, surpassing expectations despite high-interest rates. This marked an improvement from the previous month’s addition of 229,000 jobs.

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