The Cbiz Small Business Employment Index rose 1.98% on a seasonally adjusted basis in June. The report noted seasonal trends of additional hiring in recreational activities contributed to the employment gains.

“June’s employment data for small businesses shows a robust labor market where employers are hiring at a healthy pace amid a skilled labor shortage,” said Anna Rathbun, chief investment officer at Cbiz Investment Advisory Services. “Part of the rise in hiring can be attributed to seasonal trends, as summer typically brings a demand for extra personnel in recreational sectors.”

Hiring increased in nearly all industries, according to the report. The most notable gains were seen in administration and support services, arts, entertainment and recreation, and rental and leasing services.

On the regional level, the report found the largest increase in hiring in the Central and Northeast regions at 2.67% and 2.45%, respectively. The Southeast region had a minor increase at 0.78%, while the West remained flat at 0.02%.

In addition, 28% of companies in the index increased staffing in June, 56% made no change to their headcounts and 16% reduced employment totals.

Rathbun noted June’s index reflects a competitive landscape for the small business market, where hiring talent is a priority amidst the labor shortage.

“Business owners are looking to hire first and manage their margins later,” Rathbun said.

The Cbiz Small Business Employment Index tracks payroll and hiring trends for over 3,200 companies that have 300 or fewer employees.