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 hiring increase in the November reading, with a seasonally adjusted increase of 0.59%. Small business employment signaled a nice respite from the downward trend seen in the three previous months.

In November, 21% of companies increased their employee count, 59% did not make a change to their staff, and 20% decreased employee totals. Arts, Entertainment and Recreation, Accommodation and Food Services, Non-Profit, and Information had gains in employment. Technology and Life Sciences, Utilities, Rental and Leasing Services, and Construction experienced a hiring downturn.

From a regional perspective, the West (2.64%) saw a significant increase in hiring compared to the rest of the country. The Southeast (0.67%) and Central (0.59%) regions also had hiring increases. The Northeast (-0.59%) was the only region to experience a decline in hiring. This month's data suggests that increased consumer spending contributed to small business hiring gains, but looking ahead, we may see more weakness in the general labor market in 2023.

Anna Rathbun is Chief Investment Officer, CBIZ Inc.

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