The CBIZ Small Business Employment Index (SBEI), which tracks hiring trends among thousands of companies across the U.S. with 300 or fewer employees, saw a significant decline in the reading for May, with a seasonally adjusted decrease of 1.91%. Following two straight months of hiring gains, the reading for May is a reflection of employer caution in the small market.

In May, 22% of companies increased their headcounts, 53% reported no change to their employment totals, and 25% decreased their staffing. Professional Service was the only industry to experience hiring growth. The most significant declines were seen in Manufacturing, Retail, Accommodations and Food Services, and Arts and Entertainment.

Every region across the country had hiring declines. The West (-3.09%) saw the biggest decline, followed by the Southeast (-2.10%), Northeast (-1.78%) and Central (-1.62%) regions. May’s data reflects consumers’ inflation pain points and foreshadows challenges ahead for small businesses as market volatility continues. 

Anna Rathbun is Chief Investment Officer, CBIZ Inc.

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