Small Businesses Ease Hiring Woes: CBIZ Index Indicates Expansion of Workforces Despite High Interest Rates

By Eleanor Harrison Mar27,2024
Challenges in small business hiring are starting to improve due to a stable economy

The CBIZ Small Business Employment Index suggests that small businesses may be starting to ease their hiring woes. In February, there was a seasonally adjusted increase of 0.17%, indicating that small businesses are expanding their workforces despite high interest rates. Small businesses often struggle to retain workers due to their inability to offer higher salaries or benefits like health insurance.

Despite these challenges, 20% of companies in the index hired more staff in February, while 60% made no changes to their headcounts and 20% cut staff. Some industries, such as administrative and support services, arts, entertainment, recreation, and technology and life sciences, saw hiring gains. 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. This trend aligns with the broader market trend of job growth in the U.S., with employers adding 275,000 jobs in February – surpassing expectations – and demonstrating the resilience of the U.S. economy in the face of high interest rates. This job growth was higher than the previous month’s revised gain of 229

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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