The CBIZ Small Business Employment Index Shows Disappointing Drop in Hiring this February
Small business hiring diverges from the historical trend in February, showing an unusual decline in hiring
Wednesday’s jobs report from the payroll processor ADP didn’t live up to
expectations either, as private-sector job growth decelerated to the
slowest pace in job creation since
“Despite a high level of optimism among small business owners in
November and December, the current reading of the SBEI shows that this
optimism has not translated into job creation. This really isn’t
surprising, as we have been seeing weak macro-economic data lately,”
says
To review an infographic with data from the employment index, visit
the
Additional take-aways from the February SBEI include:
- At-a-glance: Only 22.5 percent of the companies included in the February SBEI increased payroll commitments during the period, while 26.3 percent reduced headcounts. 51.2 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 February period of the SBEI.
-
February take-aways: The
February 2015 SBEI reading shows the biggest decline in hiring for the month of February since the index’s inception in 2009. Though February has historically been a positive month for hiring, weak macro-economic data—including the drop of the Gallup ECI, and declines in vehicle sales and construction spending—could have contributed to this month’s negative reading. - What could the future bring? It will be important to determine whether recent declines in economic data and the SBEI are a result of the weather, or a result of a bigger, underlying economic trend. For instance, the PMI Manufacturing Index showed significant pickup during the second half of February, which may support the weather impact storyline.
“I think it will be important to allow some of the macro numbers to play out over another two months before we hit the 'sell' button on this economic recovery. I expect a weak jobs report from the BLS this month, but the reason for the weakness will be especially important to determine,” 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
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Source:
Gregory
FCA for CBIZ,
Inc.
Kelly Forst, 610-228-2396
kellyf@gregoryfca.com