Hiring challenges for small businesses may be starting to ease, according to the latest data from the CBIZ Small Business Employment Index. In February, there was a seasonally adjusted increase of 0.17%, indicating a positive trend in hiring among small companies with 300 or fewer employees across the U.S.
Despite the current high interest rate environment, the U.S. economy continues to show strength, which has allowed small businesses to expand their workforces. One of the main difficulties faced by small businesses is retaining employees, as they often cannot match the higher salaries and benefits offered by larger corporations.
The CBIZ index revealed that 20% of companies included in the study increased their staff numbers in February, while 60% maintained their current headcounts and 20% reduced their workforce.
Some industries saw more hiring activity than others. Sectors such as administrative and support services, arts, entertainment, and recreation, as well as technology and life sciences, experienced gains in hiring. On the other hand, industries like accommodation and food services, insurance, and utilities reported decreases in employment.
Regionally, the West, Southeast, and Central regions of the U.S. saw slight increases in hiring, while the Northeast region experienced a slight decline in job growth.
This positive trend in small business hiring aligns with the broader market performance. Overall, U.S. employers added 275,000 jobs in February, surpassing expectations and demonstrating the resilience of the U.S. economy in the face of high interest rates. This growth in job numbers in February represented an improvement from the previous month, which saw a revised gain of 229,000 jobs.
