The May Pattern Persists: CBIZ Small Business Employment Index Stays in Positive Territory
- Reading Remains Positive While Small Employers Are Preparing for DOL Overtime Rules -
“May has printed positive since the inception of the CBIZ SBEI. Most
readings are over one percent, so comparably, this reading is slightly
disappointing. However, considering the Department of Labor’s new
overtime rules have attracted headlines, it’s not surprising that small
employers have pressed pause on hiring to contemplate the impact of the
rule on labor costs,” says
ADP reported employment gains of 173,000 in May, matching economists’ expectations. Additionally, April’s payroll was revised up to 166,000 from 156,000.
To review an infographic with data from the employment index, visit
the
Additional takeaways from the May SBEI include:
- May’s snapshot: When compared to April’s tally, 25.2 percent of companies included in the SBEI increased payroll commitments during May and 24.5 percent decreased their workforces. 50.3 percent of the small businesses in the SBEI made no change to their employee totals. Though May has always showed growth in small business hiring, this year’s reading is less than the 0.94 percent growth average that normally takes place due to the kickoff of seasonal summer hiring.
- What industries should we be watching? For May, Utilities, Transportation, Professional Services, Construction and Retail registered gains. The largest losses came from Financial Services, Insurance and Healthcare industries. Most surprising, Healthcare showed a 2.2 percent drop in employee totals.
- Geographical Hiring: The Central and Southeast regions realized employment gains; meanwhile, the West net nearly no growth while the Northeast demonstrated a large cut in hiring, which could be due to the fact that seasonal businesses tend to open later toward the northern part the country.
-
What’s next? Though the Department of Labor’s overtime rule
will not take effect until
December 2016 , all businesses are seeking to control the costs of implementing the revised regulations in a manner that is manageable and consistent with their culture.
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/20160603005093/en/
Source:
Gregory
FCA for CBIZ,
Inc.
Kelly Forst, 610-228-2396
kellyf@gregoryfca.com