CBIZ Small Business Employment Index Levels Out to Solid Growth in February
- Small Business Labor Market Recovers After Seasonal Decline in January -
“The small business labor market is gaining its footing after a few
months of fluctuations during the election and at the start of the
year,” says
ADP and Moody’s Analytics reported companies added 298,000 jobs for the month, surpassing economists’ expectations by more than 100,000. Additionally, January’s ADP was revised upward from 246,000 to 261,000 jobs added.
To view an infographic with data from the employment index, visit
the
Additional takeaways from the February SBEI include:
- February’s snapshot: Compared to the January reading of the SBEI, 25 percent of companies in the Index increased their employee counts, 51 percent made no change to staff totals and 24 percent cut headcounts. February is historically a flat month for hiring, following a seasonal decline in January.
-
Industries at a glance: The largest industry gains were seen by
Construction, possibly due to unseasonably warmer weather in most of
the country. Technology and Life Sciences, Education, Financial
Services, Manufacturing and Healthcare also grew. Meanwhile,
Utilities,
Arts Entertainment and Recreation, Agriculture and Professional, Scientific and Technical Services realized a decline in hiring. While a broad range of industries showed modest growth, the few that declined did so dramatically, muting what could have been a more optimistic month across the board. - Geographical Hiring: Despite declines occurring across the country in January, two regions saw staff totals climb in February. The Southeast grew by 0.56 percent and the West by 1.17 percent. However, due to February’s winter weather, the Northeast showed a decline of 0.49 percent and the Central region remained relatively flat with a decline of 0.08 percent.
- What’s next? The SBEI has moved sideways over the past four months with two declines and two gains. Perhaps the small business labor market is having a difficult time digesting policy changes, economic growth, political impacts and other headlines. This shows that small business is listening carefully to President Trump’s comments on corporate tax reform, infrastructure and even immigration to gauge their future hiring plans.
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