Small Businesses Thrive Despite High Interest Rates: CBIZ Employment Index Reveals Growing Workforces and Hiring Patterns

Struggles in hiring for small businesses appear to be improving

Despite high interest rates, the U.S. economy remains strong and small businesses have been able to sustain this strength and steadily expand their workforces in February, according to Anna Rathbun, the Chief Investment Officer of CBIZ. The CBIZ Small Business Employment Index monitors hiring among thousands of businesses with 300 or fewer employees nationwide and indicated a 0.17% increase in hiring among small businesses in February.

Certain industries saw more hiring activity than others with sectors like administrative and support services, arts and entertainment, and technology and life sciences experiencing hiring gains. On the other hand, industries like accommodation and food services, insurance, and utilities witnessed decreases in employment. In terms of regional hiring patterns, the West, Southeast, and Central regions saw slight increases while the Northeast region saw a slight decline.

The positive trend in small business hiring aligns with the overall job growth in the U.S. economy as well with U.S. employers adding 275,000 jobs in February, surpassing expectations and displaying the economy’s resilience in the face of high-interest rates. This marked an increase from the previous month which saw the addition of 229,000 jobs. Small businesses often struggle to retain employees due to their inability to offer competitive salaries and benefits such as health insurance but this trend is showing that they are still able to attract new talent despite these challenges

Despite high interest rates, the U.S. economy remains strong and small businesses have been able to sustain this strength and steadily expand their workforces in February, according to Anna Rathbun, the Chief Investment Officer of CBIZ. The CBIZ Small Business Employment Index monitors hiring among thousands of businesses with 300 or fewer employees nationwide and…

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