CBIZ Small Business Employment Index Retreats for Fourth Consecutive Month
- After October decline, small businesses wait for election results to determine future hiring -
“Historically, October hiring has shown a decline among small
businesses; however, this October is well below the seasonal average of
the past five years,” says
ADP and Moody’s Analytics reported 147,000 jobs were added in October,
falling below economists’ expectations of 165,000 gains. Looking toward
the NFIB Small Business Optimism report, it’s evident that small
business owners are skeptical about the strength of the economy until
the next
To view an infographic with data from the employment index, visit
the
Additional takeaways from the October SBEI include:
- October’s snapshot: In comparison to the September reading, 20 percent of companies included in the index increased headcounts, 50 percent made no change and 30 percent decreased their staff count. While typically a negative month for small business hiring on a non-seasonally adjusted basis, this reading is well below the average for October of a 0.41 percent decrease.
- Industries at a glance: Industry segments that showed growth in October included Educational Services and Insurance. Meanwhile, Agriculture, Arts & Entertainment, Real Estate, Retail, Accommodation, Food Services and Professional Services recorded declines of greater than one percent for the month.
- Geographical Hiring: The West region was the only area of the country that showed positive employment gains among small businesses. The Central, Northeast and Southeast regions reported strong declines, all of which were over 1.5 percent.
- What’s next? Following a strong third-quarter GDP report last week, the softness in hiring among small business owners is perplexing as the two data points seem to contradict each other. However, the election will have a large impact on how small business owners adjust their headcounts going into the holiday shopping season and the New Year.
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