- Following Five Months of Consecutive Declines, December Hiring
Bounces Back -
CLEVELAND--(BUSINESS WIRE)--Jan. 6, 2017--
Small Business Employment Index (SBEI), a barometer for hiring trends
that surveys labor data from over 4,000 companies employing 300 or fewer
people, posted a 1.60 percent month-over-month increase in hiring,
breaking a five-month negative trend. The November
SBEI saw a virtually neutral decrease in hiring of 0.17 percent.
“This December’s reading seems to indicate that some of the economic
optimism we’ve seen recently may be translating down to small business
hiring,” says Philip
Noftsinger, president of CBIZ Employee Services Organization. “For
the most recent report, our SBEI tracked with NFIB’s optimism index
post-election, which showed a significant improvement in optimism among
small business owners which is expected to translate into increased
capital and labor investments in the New Year.”
ADP and Moody’s Analytics reported that businesses added 153,000 jobs in
December, falling below economists’ expectations of 175,000 job gains
and running contrary to the CBIZ SBEI.
To view an infographic with data from the employment index, visit
the CBIZ blog.1
Additional takeaways from the December SBEI include:
December’s snapshot: In comparison to the November
reading, 30 percent of companies included in the index increased
headcounts, 50 percent made no change and 20 percent decreased their
staff count. Since the index’s inception in 2009, the December
readings for the SBEI average a 1.75 percent increase in hiring. This
year’s reading falls larger than three of the previous four readings
for the period.
Industries at a glance: The largest growth occurred among
Non-Profits, which is typical for this time of year, as well as
Healthcare, Real Estate, Retail – another seasonally common sector –
and even Manufacturing. Entertainment and Recreation as well as
Professional, Scientific & Technical Services saw declines this month.
Geographical Hiring: All four regions showed improvement with
the largest growth coming from the West, registering a 2.38 percent
growth, followed by the South East with 1.72 percent, the North East
with 1.58 percent, and the Central region with 0.61 percent growth.
What’s next? There is much optimism economically as the new
administration takes shape, but small business owners should proceed
with cautious optimism, as macroeconomic data improvement still needs
to occur. There is still significant slack in employment numbers, and
despite an exciting GDP number for Q3, policy changes need to happen
quickly to support the growth in optimism and the improving trend in
economic data. Many of our nation’s problems can be more easily solved
under the gust of economic improvement, and it would appear that 2017
has opened with exciting promise.
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 CBIZ
provides human capital services. The data represented by the SBEI is
derived from a segment of employers not completely accounted for by the
ADP and Federal BLS employment reports.
(1) The SBEI Illustration is licensed under a Creative Commons
Attribution-NoDerivs 3.0 Unported License. Based on our work at http://www.cbiz.com/insights-resources/blog.
Follow CBIZ on Twitter at @CBZ
or on Facebook.
About CBIZ, Inc.
Named one of America’s 2015 Best Employers and ranked as the #1 employer
in the consulting and accounting industry by Forbes magazine, CBIZ, Inc.
provides professional business services that help clients better manage
their finances and employees. CBIZ provides its clients with financial
services including accounting, tax, financial advisory, government
health care consulting, risk advisory, real estate consulting, and
valuation services. Employee services include employee benefits
consulting, property and casualty insurance, retirement plan consulting,
payroll, life insurance, HR consulting, and executive recruitment. As
one of the nation’s largest brokers of employee benefits and property
and casualty insurance, and one of the largest accounting and valuation
companies in the United States, the Company’s services are provided
through more than 100 Company offices in 33 states. http://cbiz.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20170106005094/en/
Source: CBIZ, Inc.
FCA for CBIZ,
Kelly Forst, 610-228-2396