Small Businesses Bucking Trend: Despite High Interest Rates, Expand Workforces in Strong U.S. Economy, CBIZ Small Business Employment Index Shows

Despite the high interest rates, small businesses are expanding their workforces in the strong U.S. economy, according to the CBIZ Small Business Employment Index. In February, there was a seasonally adjusted increase of 0.17%, indicating that small businesses are starting to ease their hiring woes.

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

In February, 20% of companies in the index hired more staff, while 60% made no changes to their headcounts and 20% cut staff. Some industries, such as administrative and support services, arts, entertainment, recreation, and technology and life sciences, saw hiring gains. On the other hand, industries like accommodation and food services, insurance, and utilities experienced decreases in hiring.

Regionally, the West, Southeast, and Central regions saw slight increases in hiring, while the Northeast region saw a slight decline. This trend in small business hiring aligns with the broader market trend. In February