×

Small Business Hiring on the Rise: CBIZ Index Reveals Unexpected Strength of U.S. Economy Despite High Interest Rates

Small businesses are experiencing relief in hiring challenges as the economy remains robust, reports ET Retail

Small Business Hiring on the Rise: CBIZ Index Reveals Unexpected Strength of U.S. Economy Despite High Interest Rates

Small businesses in New York may be seeing improvements in hiring concerns, according to the CBIZ Small Business Employment Index. In February, there was a seasonally adjusted increase of 0.17%, indicating that the U.S. economy remains strong despite high interest rates. Despite their inability to offer competitive salaries and benefits like health insurance, small businesses are steadily expanding their workforce thanks to the unexpected strength of the U.S. economy.

The CBIZ index monitors hiring trends among thousands of companies with 300 or fewer employees nationwide, revealing that 20% of companies increased hiring, 60% made no changes to their staffing levels, and 20% reduced their workforce in February. Some industries, such as administrative services, arts, entertainment, and technology, saw hiring gains, while others like accommodations and food services experienced decreases. Regionally, the West, Southeast, and Central regions saw slight increases in hiring, while the Northeast saw a slight decline.

The performance of small businesses in the job market aligns with the broader employment landscape in the U.S., where employers added 275,000 jobs in February, surpassing expectations. This growth reflects the U.S. economy’s resilience in the face of high interest rates following an increase of 229,000 jobs in January.

You May Have Missed