The CBIZ Small Business Employment Index Continues Stable Growth in June
Small Business Employment Climbs for the Fourth Consecutive Month
“June’s reading of the SBEI continues into positive territory, showing
positive readings since March. Similarly, ADP’s jobs data revealed
237,000 jobs created in May, which indicates the fastest pace of growth
for the year. This number significantly exceeds economists’ expectations
of 218,000 jobs created and demonstrates that employment has remained
steady throughout the second quarter,” says
Noftsinger notes that small business growth was largely driven by three
key industries that saw significant development in June: “In this
reading, we saw continued growth
To review an infographic with data from the employment index, visit
the
Additional takeaways from the June SBEI include:
- At-a-glance: This month, 22 percent of companies included in the SBEI reduced headcounts, 28 percent increased payroll commitments, and 50 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 June period of the SBEI.
- June takeaways: The June period of the SBEI is historically mixed, though June’s findings average to 0.63 percent growth since the index’s inception since 2009. In the past six years of the Small Business Employment Index, this is only the fourth time that a four-month consecutive run in positive hiring has occurred.
- What could the future bring? As we look ahead to the rest of the summer, increased employment is becoming a steady trend. However, July is a historically negative month for small business hiring since summer hiring has usually passed its peak, and employers look to prepare for part-time hiring tapering off in the early fall. Regardless, as the Fed continues to consider the possibility of a rate hike this year, it’ll be important to keep an eye on hiring as a key player in the Fed’s decision to raise interest rates.
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