Small Businesses Finding Hiring Relief Despite High Interest Rates and Competitive Salaries

Easing of Small Business Hiring Challenges Indicates Continued Economic Strength

Despite the current economic conditions, including high interest rates, small businesses are experiencing some relief when it comes to hiring challenges. The latest data from the CBIZ Small Business Employment Index shows a seasonally adjusted increase of 0.17% in February, indicating that small businesses are continuing to expand their workforce.

One of the challenges small businesses face in hiring and retaining employees is their inability to offer competitive salaries or benefits like health insurance. However, according to Anna Rathbun, the chief investment officer of CBIZ, the unexpected strength of the U.S. economy is being reflected in the steady growth of small business hiring. In February, 20% of companies in the index increased their staff, while 60% maintained their current headcounts and 20% reduced staff numbers.

Different industries are experiencing varying levels of hiring activity, with sectors like administrative and support services, arts, entertainment, and technology and life sciences seeing gains. Conversely, industries such as accommodation and food services, insurance, and utilities reported decreases in hiring. Regionally, the West, Southeast, and Central regions saw slight increases in hiring

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