Small Business Hiring Booms Despite High-Interest Rates in US

Struggles in hiring for small businesses appear to be improving

Despite the high interest rates, the U.S. economy remains strong, with small businesses able to sustain this strength and steadily expand their workforces in February, according to Anna Rathbun, Chief Investment Officer of CBIZ. The CBIZ Small Business Employment 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.

Small businesses often struggle to retain employees due to the inability to offer competitive salaries and benefits like health insurance. However, the positive trend in small business hiring aligns with the overall job growth in the U.S. economy. In February, U.S. employers added 275,000 jobs, 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.

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

Leave a Reply