With hiring 20% above 2019 levels and payrolls rising, especially in services, there are signs of small business growth ahead.
Taylor Bowley
January 2025
With hiring 20% above 2019 levels and payrolls rising, especially in services, there are signs of small business growth ahead.
- Small business profitability in the last quarter of 2024 was stronger than the past two years, according to Bank of America account data. Plus, there are signs of positive growth ahead, with small business optimism above average levels, per the National Federation of Independent Business (NFIB).
- Bank of America data on small business average payrolls showed growth remains fairly strong across all revenue tiers, though firms with annual revenue >$1M were strongest at 5.7% year-over-year. Across sectors, finance had the strongest recovery from last year. Conversely, average services payroll growth per small business client was weaker in 2024 than in 2023.
- Even so, there were some positive trends in segments of the services sector. Payroll growth in high-touch services such as lodging and health services was more than twice as strong as overall growth, per Bank of America internal data. And although small business hiring remains 20% above 2019 levels, quality of labor could pose an increased risk to filling job openings.
