"Rising healthcare costs dominate the headlines, but what's missing from the conversation is how deeply they impact the small businesses that keep our economy running. At Gusto, we see this strain firsthand. Our latest Small Business Jobs Report showed hiring slowed in November as owners continue to navigate higher costs and uncertainty. Rising healthcare premiums aren't the only challenge, but they're making it that much harder to grow and hire with confidence."
"More than one in five small employers still offer health insurance. This is a clear reflection of how much they value their teams. That investment pays off. Gusto's data shows that employees with health coverage are 25% less likely to quit in their first year, and businesses that offer it are 13% more likely to report no difficulty hiring. Healthcare isn't just a benefit-it's a competitive advantage and retention tool for these small businesses."
Small businesses create most new jobs but face growing strain from rising healthcare costs that impede growth and hiring. Gusto data show hiring slowed in November as owners navigate higher costs and uncertainty. Since 2022, small business health insurance costs climbed 23%, outpacing inflation and wage growth; for employers with two to five employees costs rose 18% to nearly $8,500 per worker. Premiums are projected to increase 9.5% in 2026, the largest jump in 15 years. Higher premiums lead to delayed hires, reduced hours, and founders foregoing their own coverage. More than one in five small employers still offer health insurance, improving retention and hiring outcomes, yet the trend is becoming unsustainable.
Read at Fast Company
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