Robust U.S. Economy Boosts Small Business Hiring Despite High-Interest Rates

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

The U.S. economy is proving to be stronger than expected, as evidenced by the recent seasonally adjusted increase of 0.17% in hiring among small businesses nationwide, according to the CBIZ Small Business Employment Index. Despite high interest rates, small businesses are steadily expanding their workforce, with 20% of companies increasing hiring in February.

The index monitors hiring trends among thousands of companies with 300 or fewer employees across various industries. Some industries, such as administrative services, arts, entertainment, and technology, have seen hiring gains, while others like accommodations and food services experienced decreases. Regionally, the West, Southeast, and Central regions have also seen slight increases in hiring.

Anna Rathbun, chief investment officer of CBIZ, notes that the unexpected strength of the U.S. economy has allowed small businesses to expand their workforce despite facing challenges such as offering competitive salaries and benefits like health insurance. The performance of small businesses in the job market aligns with the broader employment landscape in the U.S., where employers added 275,000 jobs in February exceeding expectations.

In conclusion, it appears that concerns about hiring for small businesses in New York may be improving due to the robust state of the U.S. economy despite high-interest rates.

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