The COVID-19 pandemic ravaged families, homes, offices, and communities. Too often, small businesses bore the financial brunt. However, the small-business sector is poised for a major comeback.

Nevada small businesses are leading the nation for payroll growth as the U.S. economy continues its trek toward recovery from the COVID-19 pandemic, a new report found.
Nevada posted the biggest resurgence in payroll nationwide, with year-over-year growth of just under 30%, according to an analysis by insurance technology company Huckleberry.

Nevada’s growth was double the rate of second-place Maryland’s 15% and more than three times the payroll growth of third-place North Carolina’s 8%. 

Payroll growth, which shows increases in average wage and salaries, is typically considered to be a good indicator for recovery as well as business confidence. The state also posted impressive numbers for insurance policy growth, which jumped by 165%.

“Nevada had the biggest bounce we’re seeing in terms of year-over-year applications for insurance policies,” Nick Dehn, a spokesman for Huckleberry said.

“Those are major numbers. Nevada is really an outlier here.”
Nationwide, electrical contractors topped the list for payroll growth, followed by retail stores and plumbing and HVAC contractors.

While the report does not dig deeper into what is driving the growth in the aforementioned small business sectors, the numbers are a positive indicator for the overall health of those industries, according to Dehn.

“Payroll growth and increases in policy demand are excellent harbingers of what’s to come,” Dehn said. “When we see increases in a certain sector or industry, that indicates that there is some degree of faith in starting a new business in that sector.”
The numbers are good news for Nevada, which was hit hard by the economic effects of the pandemic.

“This was an unforeseen business disruption, the likes of which have never been seen,” Dehn said.

“If there’s anything that the pandemic has really brought to the fore, it’s just how expensive it is to run a business and how quickly cash flow can evaporate.”