Small Businesses Thriving Despite High Interest Rates: CBIZ Employment Index Shows Surprising Hiring Trends

Small businesses are experiencing relief in hiring challenges as the economy remains robust, reports ET Retail

The U.S. economy remains strong despite high interest rates, according to the CBIZ Small Business Employment Index. In February, there was a seasonally adjusted increase of 0.17%, signaling that small businesses in New York may be starting to improve their hiring concerns.

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 300 or fewer employees nationwide.

Anna Rathbun, chief investment officer of CBIZ, noted that the unexpected strength of the U.S. economy has allowed small businesses to steadily expand their workforce in February. The index revealed that 20% of companies increased hiring, 60% made no changes to their staffing levels, and 20% reduced their workforce. Some industries, such as administrative services, arts, entertainment, and technology, saw hiring gains, while others like accommodations and food services experienced decreases. Regionally, the West, Southeast, and Central regions saw slight increases in hiring, while the Northeast saw a slight decline.

The performance of small businesses in the job market aligns with the broader employment landscape in the U.S., where employers added 275,000 jobs in February, surpassing expectations. This growth reflects the U.S. economy’s resilience in the face of high interest rates

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