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Unexpected Hiring Surges Continue as Small Businesses Thrive in U.S. Economy

Improvement in Small Business Hiring Challenges as Economy Remains Robust

Unexpected Hiring Surges Continue as Small Businesses Thrive in U.S. Economy

Small businesses across the country may be experiencing an unexpected surge in hiring, as reported by the CBIZ Small Business Employment Index. Despite high interest rates, the index showed a 0.17% increase in February, indicating continued strength in the U.S. economy.

Anna Rathbun, Chief Investment Officer of CBIZ, explains that small businesses have been able to steadily expand their workforce during February due to the unexpected strength of the U.S. economy. About 20% of companies in the index increased their staffing levels, while 60% kept their headcounts the same and 20% reduced staff numbers.

The CBIZ index monitors hiring trends among thousands of companies with fewer than 300 employees across the country. Certain industries have seen significant growth, including administrative and support services, arts and recreation, and technology and life sciences. However, industries like accommodation and food services, insurance, and utilities have seen decreases in hiring activity.

Regional differences were also noted, with slight increases in hiring observed in the West, Southeast, and Central regions compared to a slight decline in the Northeast region. This trend is mirrored by broader market data showing that U.S employers added 275,000 jobs in February – surpassing expectations – indicating a resilience of the U.S economy despite high interest rates

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