Small Businesses Bounce Back with Steady Hiring in February, Defying High Interest Rates and Economic Uncertainty

Improvement in Small Business Hiring Challenges as Economy Remains Robust

The U.S. economy is showing continued strength, with small businesses experiencing steady expansion in their workforce during February, according to the CBIZ Small Business Employment Index. The index monitors hiring trends among thousands of companies with 300 or fewer employees across the country. Despite high interest rates, small businesses are able to retain workers and offer higher salaries and additional benefits such as health insurance.

According to Anna Rathbun, the chief investment officer of CBIZ, industries like administrative and support services, arts and recreation, and technology and life sciences saw hiring gains in February. On the other hand, industries like accommodation and food services, insurance, and utilities experienced decreases in staffing levels. Regional differences were also noted in hiring trends, with the West, Southeast, and Central regions experiencing slight increases in hiring compared to the Northeast region which experienced a slight decline.

This trend of small business hiring mirrors the broader market where U.S. employers added 275,000 jobs in February surpassing expectations despite high interest rates. This robust job growth showcases the resilience of the U.S economy which continues to thrive despite challenges faced by many small businesses due to inflationary pressures and supply chain disruptions caused by COVID-19 pandemic

Leave a Reply