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 0.69% in December. The holiday season tends to have strong hiring due to extra help needed for seasonal activities. Compared to years past, December’s gain was modest.

In December, 23% of companies in the index increased staffing, 60% made no change to their headcounts, and 17% reduced employment totals. Construction, Healthcare, and Nonprofit experienced hiring gains. Decreases were observed in Administration and Support Services, Rental and Leasing Services, and Utilities.

On a regional basis, the West (1.31%) reported the largest hiring increase, followed by the Central (0.91%), Northeast (0.42%), and Southeast (0.12%) regions. 2024 may prove to be a pivotal year where businesses continue or break the current trend of hoarding talent due to the labor shortage seen over the last few years. 

Anna Rathbun is Chief Investment Officer, CBIZ Inc.

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