• Sat. May 25th, 2024

Small Businesses Survive and Thrive in High Interest Rate Environment: CBIZ Small Business Employment Index Reports Positive February Hiring Trends

BySamantha Nguyen

Mar 27, 2024
Small businesses experience less difficulty in hiring as the economy remains robust

Despite high interest rates, the U.S. economy continues to show strength and small businesses are benefiting from this stability. The CBIZ Small Business Employment Index reported a seasonally adjusted increase of 0.17% in February, indicating that hiring woes may be easing for small businesses across the country.

Small businesses often struggle to retain workers due to their inability to offer higher salaries or additional benefits like health insurance. However, the CBIZ index monitors hiring trends among thousands of companies with 300 or fewer employees nationwide and has found that the U.S. economy is exhibiting unexpected strength in the current high interest rate environment, allowing small businesses to steadily expand their workforce during the month of February.

In February, 20% of companies in the index increased their staff while 60% maintained their current headcounts. Additionally, 20% of companies decreased their staff numbers during the same period. While certain industries have seen better hiring results than others, such as administrative and support services, arts, entertainment and recreation, technology and life sciences reporting hiring gains while accommodation and food services, insurance and utilities experiencing decreases. Regionally, the West, Southeast and Central regions saw slight increases in hiring while the Northeast region saw a slight decline in employment growth.

These trends are reflective of broader market as U.S employers added 275,000 jobs in February surpassing expectations and demonstrating resilience of U.S economy despite high interest rates .February’s job growth marked an improvement from revised gain of 229,000 jobs in January showing that despite challenges , business is still growing steadily in America

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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