SMB hiring rate by sector

What "hiring rate" measures

BLS Business Employment Dynamics (BED) defines hiring rate as new hires in the quarter divided by average employment. The average across all small businesses (under 500 employees) is currently 3.4%, down from a 2021–2022 peak of 5.1% but above the pre-pandemic baseline of 3.1%.

By sector

Healthcare consistently leads, driven by demographic demand. Hospitality + food service is structurally high due to turnover. Tech + information is the slowest — that's the post-2023 contraction continuing to play out at SMB level.

• Health care + social services — 4.7%
• Hospitality + food service — 4.1%
• Construction — 3.9%
• Professional + business services — 3.5%
• Retail trade — 3.2%
• Manufacturing — 2.6%
• Information / tech — 2.2%