• Tue. May 28th, 2024

Small Businesses Beating the Odds: Unexpected Hiring Gains Amid Economic Challenges

BySamantha Nguyen

Mar 27, 2024
Signs of Small Business Hiring Woes Easing Amid Strong Economy

Despite the challenges that small businesses face in retaining workers, the CBIZ Small Business Employment Index recently reported a slight increase in hiring for small businesses in February. This positive trend reflects the overall strength of the U.S. economy, which has been performing well even in the face of high interest rates.

The index tracks hiring among thousands of companies with 300 or fewer employees across the country. According to Anna Rathbun, the chief investment officer of CBIZ, the unexpected strength of the U.S. economy is evident in the steady expansion of small business workforces in February. While 20% of companies in the index added more staff, 60% made no changes to their headcounts, and 20% reduced their staff.

Certain industries saw more hiring gains than others, including administrative and support services, arts, entertainment, and recreation, and technology and life sciences. On the other hand, industries like accommodation and food services, insurance, and utilities experienced decreases in hiring. Regionally, the West, Southeast, and Central regions saw slight increases in hiring, while the Northeast region saw a slight decline.

Small businesses are not immune to economic challenges but are still able to hire despite their limitations when it comes to salaries and benefits like health insurance. This positive trend for small businesses mirrors broader job market trends for U.S employers who added 275,000 jobs surpassing expectations and demonstrating resilience despite high interest rates

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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