Small Business Hiring Continues to Plunge in August, According to CBIZ Small Business Employment Index
- SBEI reports consecutive substantial decrease in hiring of 2.27 percent in August, bringing the summer to a close on a negative employment note -
“The large loss in small business employment totals this month bucks the
seasonal trend of positive readings,” says
However, far exceeding analysts’ expectations of a mild 185,000 increase
in private sector jobs, ADP and Moody’s Analytics’ reported that the
economy added 237,000 jobs in August, perhaps showing the difference
between
To view an infographic with data from the employment index, visit
the
Additional takeaways from the August SBEI include:
- August’s snapshot: When compared to the July reading of the SBEI, 49.3 percent of companies made no change to staff totals, while 19.4 percent increased headcounts and 31.3 percent decreased their employee count. While August is historically a volatile hiring month, this reading is far below the average of a 0.28 percent decline in hiring during the period.
- Industries at a glance: All major industries reported declines except for Agriculture. Those industries that depend on the consumer, mainly Retail, Non-Profits, Healthcare and Accommodations and Food Services, all realized notable declines in hiring during the August period.
- Geographical hiring: All regions across the U.S. realized declines in hiring, led by the West, which registered a 4.36 percent decline. The Central, Southeast and Northeast followed suit, reporting declines of 2.38 percent, 1.71 percent and 0.54 percent, respectively.
- What’s next? If small business hiring continues to log disappointing results, small business owners may begin to watch for signs of a potential recession. Congressional decisions in regard to fiscal policy and slow economic growth could also impact decisions around hiring changes headed into 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
Follow
About
View source version on businesswire.com: http://www.businesswire.com/news/home/20170901005258/en/
Source:
Gregory
FCA for CBIZ,
Inc.
Kelly Forst, 610-228-2396
kellyf@gregoryfca.com