Small Business Hiring Falls Throughout Third Quarter, According to CBIZ Small Business Employment Index
- SBEI records a decrease in hiring of 0.35 percent in September, following significant declines in August and July -
“While there has never been a positive September SBEI report, this
year’s reading had the potential to be the first, had it not been for
Hurricanes Harvey and Irma,” says
ADP and Moody’s Analytics reported that 133,000 new jobs were created in September, aligning with the SBEI’s results but coming in slightly short of economists’ expectations.
To view an infographic with data from the employment index, visit
the
Additional takeaways from the September SBEI include:
- September’s snapshot: Compared to the August reading of the SBEI, 48 percent of companies did not make employment changes, 27 percent cut headcounts and 25 percent bolstered their employee totals. September historically experiences hiring cuts, averaging a decline of 1.18 percent since 2009.
- Industries at a glance: The Education, Transportation and Utilities sectors led industry growth in September, while Construction maintained mild hiring growth. Notable industry hiring declines occurred in Arts and Entertainment, Insurance, Retail, Scientific and Non-Profits.
- Geographical hiring: Hiring in the Central region was flat, declining only 0.05 percent, while the Northeast saw a slight decline of 0.83 percent, which is typical this time of year. Meanwhile, the West posted a 0.13 percent growth in hiring. The Southeast experienced the most notable impact from the hurricanes, posting a 1.15 percent decline for the month.
- What’s next? Whether or not regions impacted by Hurricanes Harvey and Irma ramp up hiring in the months ahead as recovery efforts draw more workers to the area is yet to be seen. However, it’s difficult to get a read on what September’s report says about the overall state of the U.S. economy, as the natural disasters facing the country have temporarily interrupted hiring patterns. Looking ahead to the fourth quarter, possible monetary policy change from the Federal Reserve also has the potential to impact small business hiring.
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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View source version on businesswire.com: http://www.businesswire.com/news/home/20171006005048/en/
Source:
Gregory
FCA for CBIZ,
Inc.
Kelly Forst, 610-228-2396
kellyf@gregoryfca.com