• Fri. May 24th, 2024

Small Businesses Expanding Their Workforces Despite High Interest Rates: CBIZ Small Business Employment Index

BySamantha Nguyen

Mar 27, 2024
Hiring challenges for small businesses improving with continued economic strength

Small businesses are slowly adding to their workforce as the U.S. economy continues to perform well despite high interest rates, according to the latest data from the CBIZ Small Business Employment Index. The index monitors hiring trends among thousands of companies with 300 or fewer employees across the country, and in February, there was a seasonally adjusted increase of 0.17%.

Small businesses often struggle to retain employees as they are unable to offer competitive salaries or benefits like health insurance, but the unexpected strength of the U.S. economy is reflected in the steady expansion of small business workforces in February. Approximately 20% of companies in the index hired more employees, while 60% maintained their current headcounts and 20% reduced staff.

Certain industries are faring better than others in terms of hiring, with sectors such as administrative and support services, arts and entertainment, and technology and life sciences experiencing gains. Conversely, industries like accommodation and food services, insurance, and utilities saw decreases in hiring.

Regionally, the West, Southeast, and Central regions saw slight increases in hiring, while the Northeast region experienced a slight decline. This trend in small business hiring aligns with the broader market, as U.S. employers added 275,000 jobs in February, surpassing expectations and demonstrating the resilience of the U.S

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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