The CBIZ Small Business Employment Index (SBEI), which tracks hiring trends among thousands of companies with 300 or fewer employees across the U.S., indicated a seasonally adjusted increase of 0.29% in April. Small businesses have shown a steady increase in hiring in the first quarter of the year, extending the theme of strength and resilience in the American economy.

In April, 19% of companies in the index increased staffing, 61% made no change to their headcounts, and 20% reduced employment totals. Administrative and Support Services; Agriculture, Fishing and Hunting; and Arts Entertainment, and Recreation experienced hiring gains. Decreases were seen in Educational Services, Financial Services, and Utilities.

Regionally, there were increases in hiring seen in the Northeast (0.63%), Central (0.53%), and Southeast (0.13%) regions. While the West (-1.21%) experienced a decrease. Strong hiring gains aren’t expected in April so this report shows the resilience of small businesses. Looking ahead, inflation and interest rates may put pressure on Americans and affect hiring into the summer months. 

Anna Rathbun is Chief Investment Officer, CBIZ Inc.

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