• Mon. May 20th, 2024

Small Businesses Start to Overcome Hiring Challenges as CBIZ Employment Index Reports Seasonally Adjusted Increase

BySamantha Jones

Mar 27, 2024
Small businesses experience less difficulty in hiring as the economy remains robust

In February, the CBIZ Small Business Employment Index reported a seasonally adjusted increase of 0.17%, indicating that small businesses across the country may be easing their hiring woes. This positive development comes despite high interest rates and the challenges that small businesses often face when it comes to retaining workers due to their inability to offer higher salaries or additional benefits like health insurance.

According to Anna Rathbun, chief investment officer of CBIZ, the U.S. economy has shown unexpected strength in the current high interest rate environment, enabling small businesses to steadily expand their workforce during the month of February. This is reflected in the fact that 20% of companies in the index increased their staff, while 60% maintained their current headcounts. Additionally, 20% of companies decreased their staff numbers during the same period.

Certain industries have seen better hiring results than others. For example, sectors such as administrative and support services, arts, entertainment and recreation, as well as technology and life sciences reported hiring gains, while industries like accommodation and food services, insurance, and utilities experienced decreases.

Regionally, the West, Southeast, and Central regions saw slight increases in hiring, while the Northeast region saw a slight decline in employment growth. These trends are reflective of broader market trends, as U.S. employers added 275,000 jobs in February, surpassing expectations and demonstrating the resilience of the U.S. economy despite high interest rates. February’s job growth marked an improvement from the revised gain of 229,000 jobs in January.

Overall, these developments suggest that small businesses are slowly but surely starting to recover from some of their struggles with hiring due to economic conditions like high interest rates and inflationary pressures.

In conclusion

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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