June Hiring Jumps: CBIZ Small Business Employment Index Stays Positive for Fifth Straight Month
- Brexit Impact Remains to be seen on
“June’s reading is positive news for the labor market and for the
domestic economy in general. While Brexit rattled global markets, it has
not yet had an impact on hiring trends for domestic small businesses,”
says
ADP reported 172,000 jobs were added in June, exceeding economists’ expectations of 159,000 gains. Phil adds, “ADP’s numbers showed mild growth in small business employment, in line with expectations, and consistent with the SBEI showing mild growth even over the normal seasonal growth typically associated with June.”
To review an infographic with data from the employment index, visit
the
Additional takeaways from the June SBEI include:
- June’s snapshot: When compared to May’s tally, 30 percent of companies in the SBEI increased headcounts, 49 percent made no change and 21 percent decreased their staff size. Historically, seven of the past eight readings of the June SBEI have been positive, averaging about a 0.67 percent increase each year.
- What industries should we be watching? In June, construction, financial and professional services realized staff gains. Unsurprisingly, headcounts in education declined, while decreases in accommodation and foodservices could signal more reserved consumer spending habits during the summer season.
- Geographical Hiring: While the Northeast led the charge for increased hiring in June, the Central region maintained solid employment gains as well. The Southeast also hovered in positive territory, but the West region saw declines.
-
What’s next? It will be important to watch the developing story
around Brexit and its potential impact on the
U.K. and Eurozone economies. Certainly, the threat of recession is out there, but of the world’s economies, the U.S. is probably the best positioned to weather it.
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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Source:
Gregory
FCA for CBIZ,
Inc.
Kelly Forst, 610-228-2396
kellyf@gregoryfca.com