Small businesses across the country are experiencing growth in their workforce despite the current economic conditions. The latest data from the CBIZ Small Business Employment Index shows a seasonally adjusted increase of 0.17% in February, indicating that small businesses are continuing to expand despite challenges such as high interest rates.
One of the challenges small businesses face is their inability to offer competitive salaries or benefits like health insurance. However, according to Anna Rathbun, chief investment officer of CBIZ, the unexpected strength of the U.S. economy is being reflected in the steady growth of small business hiring. In February, 20% of companies in the index increased their staff, while 60% maintained their current headcounts and 20% reduced staff numbers.
Different industries are experiencing varying levels of hiring activity, with sectors like administrative and support services, arts, entertainment, and technology and life sciences seeing gains. Conversely, industries such as accommodation and food services, insurance, and utilities reported decreases in hiring.
Regionally, the West, Southeast, and Central regions saw slight increases in hiring while the Northeast region experienced a slight decline. This regional variation reflects the diverse economic landscape across the country.
The positive hiring trend among small businesses mirrors the broader market as U.S employers added 275,000 jobs in February exceeding expectations
