Small Businesses Overcome Hiring Concerns in New York: CBIZ Report

Small businesses are experiencing relief in hiring challenges as the economy remains robust, reports ET Retail

The U.S. economy’s resilience in the face of high interest rates is reflected in the performance of small businesses in New York, according to the CBIZ Small Business Employment Index. In February, there was a seasonally adjusted increase of 0.17%, signaling that small businesses are slowly starting to overcome hiring concerns.

Small businesses often struggle to retain employees due to their inability to offer competitive salaries and benefits like health insurance. However, the unexpected strength of the U.S. economy has allowed companies with 300 or fewer employees nationwide to steadily expand their workforce in February, according to Anna Rathbun, chief investment officer of CBIZ. The index revealed that 20% of companies increased hiring, 60% made no changes to their staffing levels, and 20% reduced their workforce.

Some industries saw hiring gains, while others experienced decreases. For example, administrative services, arts, entertainment, and technology saw increases in hiring, while accommodations and food services experienced decreases. Regionally, the West, Southeast, and Central regions saw slight increases in hiring, while the Northeast saw a slight decline.

The growth in small business employment aligns with broader employment trends in the U.S., where employers added 275,000 jobs in February

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