Signs of Small Business Hiring Woes Easing Amid Strong Economy

Small businesses in the U.S. saw a slight increase in hiring in February, despite the challenges they face in retaining workers due to their limited ability to offer higher salaries and benefits like health insurance. This positive trend reflects the overall strength of the U.S. economy, which has been performing well even in the face of high interest rates, according to a report from the CBIZ Small Business Employment Index.

The index tracks hiring among thousands of companies with 300 or fewer employees across the country. Anna Rathbun, the chief investment officer of CBIZ, said that the unexpected strength of the U.S. economy is evident in the steady expansion of small business workforces in February. While 20% of companies added more staff, 60% made no changes to their headcounts, and 20% reduced their staff.

Certain industries saw more hiring gains than others, including administrative and support services, arts, entertainment, and recreation, and technology and life sciences. On the other hand, industries like accommodation and food services, insurance

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