Hiring Growth for Small Businesses Continues in March
09 April 2024 - 2:30PM
Business Wire
The CBIZ Small Business Employment Index
reported a minor uptick in hiring for the second straight month
The CBIZ Small Business Employment Index (“SBEI”) reported a
seasonally adjusted increase of 0.18% in March as the U.S. economy
continues to show strength and resilience. The CBIZ SBEI tracks
payroll and hiring trends for over 3,000 companies that have 300 or
fewer employees, providing broad insight into small business
trends.
“Small businesses continued to hire in March, reflecting the
ongoing theme of strength and resilience within the American
economy,” said Anna Rathbun, CFA, Chief Investment Officer, CBIZ
Investment Advisory Services, LLC. “With the broadening upward
momentum in the capital markets, it's clear that Main Street is
also capitalizing on this positive trend.”
The Bureau of Labor Statistics’ employment report indicated
hiring growth that beat expectations. The March reading showed an
overall increase of 303,000 private-sector jobs. The national
unemployment rate fell slightly to 3.8%. The report is inclusive of
all non-farm private employers across businesses of all sizes.
Meanwhile, the ADP employment report indicated hiring growth among
small, medium and large-sized companies. Its March reading showed
an overall increase of 184,000 private-sector jobs for the month.
Small businesses accounted for an increase of 16,000 of those jobs
on a seasonally adjusted, month-over-month basis. The ADP report
counts small businesses as companies with 49 or fewer employees,
while the CBIZ SBEI uses data from companies with 300 employees or
fewer.
On a regional basis, the Northeast (0.22%), Central (0.22%), and
Southeast (0.09%) regions all experienced a hiring increase. The
West (-0.02%) was the only region to experience a decline.
On an industry level, gains in employment were seen in
Administrative and Support Services; Agriculture, Fishing and
Hunting; and Arts, Entertainment and Recreation. Industry decreases
were seen in Insurance, Technology and Life Sciences, and Wholesale
Distribution.
Rathbun added, “Looking ahead, it will be crucial to watch
whether this current economic momentum is sustainable in the higher
rate environment. Even if the Federal Reserve cuts interest rates,
it won’t be a substantial amount.”
To view an infographic with data from the employment index,
visit the CBIZ website.
Additional takeaways from the March SBEI include:
March’s snapshot: 23% of companies in the index increased
staffing, 60% made no change to their headcounts and 17% reduced
employment totals.
Industries at-a-glance: Administrative and Support
Services; Agriculture, Fishing and Hunting; and Arts, Entertainment
and Recreation experienced hiring gains. Decreases were seen in
Insurance, Technology and Life Sciences, and Wholesale
Distribution.
Geographical hiring: Increases were seen in the Northeast
(0.22%), Central (0.22%), and Southeast (0.09%). The West (-0.02%)
region experienced a decrease.
What’s next? Heading into the second quarter, small
businesses will need to continue to be resilient in this economy.
Whether small businesses can continue this hiring trend is up in
the air.
Editor’s note:
(1) The SBEI illustration is licensed under a Creative Commons
Attribution-NoDerivs 3.0 Unported License. Based on our work at
https://www.cbiz.com.
Follow CBIZ on Twitter at @CBZ or on Facebook.
About CBIZ
CBIZ is a leading provider of financial, insurance and advisory
services to businesses throughout the United States. Financial
services include accounting, tax, government health care
consulting, transaction advisory, risk advisory, and valuation
services. Insurance services include employee benefits consulting,
retirement plan consulting, property and casualty insurance,
payroll, and human capital consulting. With more than 120 offices
in 32 states, CBIZ is one of the largest accounting and insurance
brokerage providers in the U.S. For more information, visit
https://www.cbiz.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240409607074/en/
Media Alex Ortiz Gregory FCA for CBIZ
Alexo@gregoryfca.com 610-228-2119
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