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 0.18% in March. Small businesses have shown a steady increase in hiring the past two months, extending the theme of strength and resilience in the American economy.

In March, 23% of companies in the index increased staffing, 60% made no change to their headcounts, and 27% reduced employment totals. Industries that experienced hiring gains included Administrative and Support Services; Agriculture, Fishing and Hunting; and Arts, Entertainment and Recreation. Industry decreases were observed in Insurance, Technology and Life Sciences, and Wholesale Distribution.

Regionally, 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. The Federal Reserve is expected to cut interest rates later this year, it will not be by a drastic amount. While it remains unclear whether this economic momentum is sustainable, small businesses will have to remain resilient in this environment. 

Anna Rathbun is Chief Investment Officer, CBIZ Inc.

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