• Mon. Jun 24th, 2024

Small Businesses in US Experience Unexpected Increase in Hiring Despite Challenges with Retention

BySamantha Jones

Mar 27, 2024
Signs of Small Business Hiring Woes Easing Amid Strong Economy

Small businesses in the US are experiencing a slight increase in hiring despite the challenges they face in retaining workers due to their limited ability to offer higher salaries and benefits such as health insurance. The CBIZ Small Business Employment Index reported a seasonally adjusted increase of 0.17% in hiring for small businesses in February, reflecting the overall strength of the U.S. economy, which has been performing well even with high interest rates.

The index tracks hiring among thousands of companies with 300 or fewer employees across the country, and Anna Rathbun, chief investment officer at CBIZ, attributes this unexpected strength to the steady expansion of small business workforces in February. While 20% of companies added more staff, 60% made no changes to their headcounts, and 20% reduced their staff.

Certain industries saw more hiring gains than others, including administrative and support services, arts, entertainment, and recreation, technology and life sciences. In contrast, 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.

The positive hiring trends for small businesses mirror those seen in the broader job market in February when U.S employers added 275,000 jobs surpassing expectations and demonstrating the resilience of the economy despite high interest rates. This growth was higher than the revised gain of 229

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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