Small Business Checkpoint

Despite slowing revenues, payments to small business hiring firms remain robust.

Headshot of Anna Zhou

Anna Zhou

Headshot of Taylor Bowley

Taylor Bowley

February 2023

Key takeaways

  • We offer a timelier view on hiring demand from small businesses given that public data on job openings is only available on a two-month lag. Aggregated small business (SB) client payments to hiring firms, based on Bank of America internal data, suggest that hiring demand in January remained robust by pre-Covid standards but was cooling from a year ago.
  • Despite growing macroeconomic headwinds, small businesses continue to look for workers. This is partly due to lingering labor shortages, though we think the gap between demand and supply for workers should continue to narrow. In addition, despite slowing revenues, small businesses continue to make profits.
  • In January, small business payments to SB-focused hiring firms were 72% higher than in January 2020 but 25% lower than the same period in 2022. Similarly, the number of transactions for these payments is over 80% higher than the same time in 2020 but 17% lower than a year ago.

Read our full analysis for a more in-depth look at these trends.

Small Business Checkpoint is a regular publication from Bank of America Institute. It aims to provide a real-time assessment of small business spending activities and financial well-being, leveraging the depth and breadth of Bank of America’s proprietary data. Such data is not intended to be reflective or indicative of, and should not be relied upon as, the results of operations, financial condition or performance of Bank of America.