This month’s Bank of America Small Business Checkpoint offers an interesting hiring snapshot:

while overall economic pressures remain high, some sectors are charging ahead with payroll expansion.

Highlights:

  • Construction and manufacturing firms increased payroll payments by 33% year-over-year in July, suggesting strong hiring momentum (likely fueled by reshoring and infrastructure demand).
  • Sectors like hospitality and retail, however, continue to struggle with labor shortages and wage pressures that are slowing their recovery.
  • Despite the growing cost burden of tariffs (up 170%), most small businesses are still showing positive profitability, for now.

Why It Matters:

Labor, not just capital, is defining the pace of small business growth in 2025.

Whether you’re in logistics, staffing, software, or SMB finance, it’s worth paying attention to:

  • Which sectors are hiring vs. hesitating
  • How employers are navigating a tight market
  • Where automation, outsourcing, or wage strategy is coming into play