NEW YORK (AP) — Employment problems may be easing for small businesses.
The CBIZ Small Business Employment Index reported a seasonally adjusted 0.17% increase in February as the U.S. economy remained strong despite high interest rates.
Small businesses often cannot offer benefits like higher salaries or health insurance, making it even more difficult to retain employees.
The CBIZ Index tracks the hiring performance of thousands of companies with 300 or fewer employees across the United States.
“The U.S. economy has shown unexpected strength in a high interest rate environment,” said Anna Rathbun, chief investment officer at CBIZ. She said: “It is clear that small businesses have maintained their strength so far as they steadily expanded their workforce during February.”
In February, 20% of companies included in the index hired additional employees, while 60% made no changes to their workforce. Meanwhile, headcount was reduced by 20%.
Some industries are doing better than others. Industries with increased employment include administrative and support services; Arts, Entertainment and Recreation. and technology and life sciences. Decrease was seen in accommodation/food services, insurance, utility charges, etc.
By region, the number of recruitment increased slightly in the western, southeastern, and central regions, but decreased slightly in the northeastern region.
Small business trends are also reflected in the broader market. U.S. employers added 275,000 jobs in February, more than expected, demonstrating the resilience of the U.S. economy in the face of high interest rates. Employment growth in February was up from January's revised figure of 229,000 jobs.
