An April Boost: The CBIZ Small Business Employment Index Reaches Peak in 2016
- Large & Small Employers Are Not Seeing Eye-to-Eye -
“Defying recent macroeconomic data, the April reading of the Small
Business Employment Index shows that small employers are continuing to
reap the benefits of a slow but steadily growing domestic economy.
However, given the disappointing ADP number on Wednesday, it’s clear
that larger employers, who may have international exposure, are less
engaged in hiring. We’re seeing a disconnect between the hiring levels
of large companies and smaller, more locally focused enterprises,” says
Wednesday’s jobs report from payroll processor ADP and Moody’s Analytics revealed that businesses added 156,000 new hires versus the 195,000 expected for April. March private payrolls were revised down 6,000 to 194,000.
To review an infographic with data from the employment index, visit
the
Additional takeaways from the April SBEI include:
- April’s snapshot: When compared to March’s Index, 27 percent of companies included in the SBEI increased payroll commitments during April and 22 percent decreased their workforces. 51 percent of the small businesses in the Index made no change to their employee totals. This reading follows the typical April hiring trend; since the Index’s inception, April has always seen a positive reading, averaging at 1.03 percent for the past seven years. Seasonally adjusted, hiring increased by 0.81 percent this month.
-
What industries should we be watching? For April, Arts and
Entertainment was the leading industry in job gains, followed by
Construction and
Real Estate . The only significant industry group that showed a reduction in hiring was the Utilities sector. - Geographical Hiring: Across the country, all regions showed positive growth, with the Northeast demonstrating the largest growth at 2.13 percent, followed by the Southeast at 1.83 percent, Central at 1.29 percent and West at 0.53 percent.
- What’s next? If global macroeconomic deterioration continues into the summer months, historical data suggests that it will affect smaller employers in the coming quarters and into next year. With a potential Fed rate hike around the corner in June, employment will need to remain strong and global economic waters will need to calm before the domestic economy can make notable progress.
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 the U.S., where
Editor’s note:
(1) The SBEI Illustration is licensed under a
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View source version on businesswire.com: http://www.businesswire.com/news/home/20160506005160/en/
Source:
Gregory
FCA for CBIZ,
Inc.
Kelly Forst, 610-228-2396
kellyf@gregoryfca.com