May 20, 2024 12:51 am
Signs of Small Business Hiring Woes Easing Amid Strong Economy

Small businesses are experiencing a slight increase in hiring, despite facing challenges 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 February, reflecting the overall strength of the U.S. economy.

Despite some small businesses reducing their staff, many added more, with 20% making positive changes to their workforce. According to Anna Rathbun, chief investment officer of CBIZ, the steady expansion of small business workforces is evidence of the unexpected strength of the U.S. economy. Certain industries saw more hiring gains than others, including administrative and support services, arts and entertainment, technology and life sciences, while accommodation and food services experienced decreases in hiring.

The West, Southeast, and Central regions experienced slight increases in hiring in February, while the Northeast region saw a slight decline. The positive hiring trends for small businesses mirror those seen across the broader job market in the U.S., with employers adding 275,000 jobs surpassing expectations and demonstrating the resilience of the economy despite high interest rates.

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