CBIZ Small Business Employment Index Sinks for First Time since January
- July Hiring Follows Historical Pattern of Decreasing Employee Headcounts -
“Small businesses continue to remain tenacious through 2016 despite some
strong headwinds,” says
ADP and Moody’s Analytics reported gains of 179,000 in July, which supports the notion of a solid labor market this most recent month. June’s reading was initially reported at 172,000 gains, but was revised up to 176,000.
To review an infographic with data from the employment index, visit
the
Additional takeaways from the July SBEI include:
- July’s snapshot: In comparison to the June SBEI, 25 percent of companies increased staff, 51 percent made no change while 24 percent decreased employee headcounts. Despite the SBEI’s month-over-month decrease, more companies in the index added employees than not. This shows that those larger small businesses are reducing hiring while companies on the smaller end of the spectrum continue to invest in human capital.
- What industries should we be watching? Industries that added workers in July include Construction, Healthcare, Real Estate, Financial Services and Professional Services. Non-Profit, Education and Transportation, meanwhile, all saw declines.
- Geographical Hiring: The country was split in July, with the Northeast realizing a 1.53 percent gain and the Southeast showing a 0.42 percent gain in employee headcounts. The Central region and West regions declined by 0.74 percent and 0.61 percent, respectively.
- What’s next? As the fallout from Brexit remains mild and the U.S. economy demonstrates resiliency through earnings season, the strength of the labor market will be a major factor the Fed will be using to make its rate hike decision. Assuming a strong retail season in the fall and holiday shopping season, 2016 could pan out to be a sturdy year for the small business labor market.
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
Desk: 610-228-2396
kellyf@gregoryfca.com