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 an increase in hiring in the June reading, with a seasonally adjusted increase of 1.98%. Part of the increased hiring observed in June can be attributed to seasonal trends as the summer months require additional help in recreational sectors of the labor market.
In June, 28% of companies in the index increased staffing, 56% made no change to their headcounts, and 16% reduced employment totals. Administration and Support Services, Arts, Entertainment and Recreation, and Rental and Leasing Services all experienced notable hiring gains.
The Central (2.67%) region reported the largest increase in hiring, followed by the Northeast (2.45%). The Southeast (0.78%) saw a slight uptick and the West (-0.02%) remained flat. With consumer spending showing signs of slowing down, small business owners may need to prioritize their margins and potentially decrease or pause hiring.
Anna Rathbun is Chief Investment Officer, CBIZ Inc.
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