The CBIZ Small Business Employment Index Shows Small Business Hiring Positive in December
2014’s Final Results Break a Three Months-Long Trend of Negative Job Readings for the SBEI
Wednesday’s jobs report from the payroll processor ADP also had a positive tone in that it offered that businesses added 241,000 jobs last month, surpassing the 225,000 threshold that was expected by surveyed economists.
“Small business owners appeared extremely optimistic according to the
November NFIB report, which pinned its gains to business conditions six
months from now. The December SBEI results indicate that hiring advanced
for those businesses in December, perhaps a result of that optimism,”
says
To review an infographic with data from the employment index, visit our blog.¹
Additional take-away points from the November SBEI include:
- At-a-glance: 28 percent of the companies included in the SBEI during December added staff during the period, while only 21 percent decreased payroll commitments. 51 percent of the small businesses in the Index made no change to their employee totals. More than 4,000 small businesses were included in the November and December periods of the SBEI.
-
Take-aways from Decembers past: The
December 2014 SBEI reading also exceeded the prior two December readings in 2013 and 2012, further supporting that the optimism felt in the November NFIB report may have translated to additional job growth beyond what should be seasonally expected for December. - What could the future bring? There is still reason for caution though, as the details behind the November BLS numbers continue to show growth in sectors that traditionally represent part-time employment. For example, Food Services and Drinking Places grew by 26.5% while Employment Services (temporary labor) grew by 28.4%. These indicate that a good portion of Americans are supplementing their income through holding part-time or multiple jobs.
“The path to labor recovery does run through part-time growth, as employers step carefully back into investments in labor through part-time and temporary help. So, while job growth is being realized, full-time growth is still needed, and can reasonably be expected if the overall economic environment can support transition from part-time investments in labor to full-time commitments,” continued Noftsinger.
CBIZ Payroll Services manages payroll services for more than 4,000
businesses. Its index reflects a broad array of industries and
geographies corresponding to the markets across
Editor’s note:
(1) The SBEI illustration is licensed under a
Follow
About
Source:
Gregory
FCA for CBIZ,
Inc.
Jimmy Moock, 610-228-2125
jimmy@gregoryfca.com