For the Fifth Consecutive Month, the CBIZ Small Business Employment Index Advances
Small Business Employment Strengthens Despite Historical Struggles During July
“Uncharacteristically, July’s reading of the SBEI defies a six-year
average of negative readings for the month. The SBEI has continually
reported growth since March, making this a positive five-month streak in
small business employment. And, if the SBEI were seasonally adjusted
like other employment indicators, the index would show a 1.05 percent
gain,” says
“Though the ADP’s findings fell below economists’ expectations with a reading of 185,000 jobs added in July, this is the season where auto manufacturers frequently reduce headcount to prepare for the new model year. This can wreak havoc with jobs numbers.”
To review an infographic with data from the employment index, visit
the
Additional takeaways from the July SBEI include:
- July snapshot: This month, 23 percent of companies included in the SBEI reduced headcounts, 27 percent increased payroll commitments, and 50 percent of the small businesses in the index made no change to their employee totals. The average for the July period of the SBEI comes in at -0.76 percent, making this the first July reading to rebel against its historically negative showing.
- What industries are fueling growth? The SBEI tracked gains this month in a number of professions, including Professional Services, Manufacturing, Wholesale Distribution and Health Care. Construction was also mildly positive. However, Nonprofits, Accommodation, Food Services and Educational Services all showed a decline last month.
- What’s next? The strengthening domestic economy and employment situation are fueling the positive trend in small business hiring this year. Continued traction going into the fall should be a signal of strong third and fourth quarters for small businesses. 2015 has the potential to be the best year for small business hiring since 2007 as the economy continues to recover.
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
Desk: 610-228-2396
kellyf@gregoryfca.com