Small Businesses Thriving Despite High-Interest Rates: CBIZ Small Business Employment Index Shows Steady Growth and Expansion

Struggles in hiring for small businesses appear to be improving

Despite the high interest rates, small businesses in the United States are experiencing steady growth and expansion. According to Anna Rathbun, Chief Investment Officer of CBIZ, this is evident in the recent increase in hiring among small businesses as indicated by the CBIZ Small Business Employment Index.

The index monitors hiring among thousands of businesses with 300 or fewer employees nationwide and showed that 20% of companies increased their staff, 60% maintained their headcounts, and 20% reduced staff. The positive trend in small business hiring aligns with the overall job growth in the U.S. economy, which saw an increase of 275,000 jobs added in February, surpassing expectations and displaying resilience in the face of high-interest rates.

Small businesses often struggle to retain employees due to their limited ability to offer competitive salaries and benefits like health insurance. However, despite these challenges, many small businesses are able to sustain growth and expand their workforces. The CBIZ index provides valuable insights into hiring patterns across various industries and regions, allowing policymakers and stakeholders to make informed decisions about economic policy and investment strategies.

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