CBIZ Small Business Employment Index Follows Historical Summer Decline for July
- Small business hiring decreases as summer staffing needs lessen -
“July historically shows a seasonal decline in hiring as employers reach
full staffing for the requisite summer months’ demand,” says
ADP and Moody’s Analytics reported Wednesday that the private sector posted an employment increase of 219,000 month-over-month, on a seasonally adjusted basis. Small businesses accounted for 52,000 of those jobs and the report found that almost all sectors and industries reported an increase.
To view an infographic with data from the employment index, visit
the
Additional takeaways from the July SBEI include:
-
July’s snapshot: When compared to the June reading, 21 percent
of companies increased their headcounts, 49 percent refrained from
making labor changes, and 30 percent decreased their employee totals.
Since the SBEI’s inception in
June 2009 , the July reading has seen an average hiring decrease of 0.99 percent, and this year’s reading is the second-largest decline during the July period. - Industries at a glance: Of the industries reflected in the index, Agriculture grew notably, which is common during the summer months, followed by Insurance and Wholesale Distribution. Meanwhile, Transportation, Education, Non-Profits, and Accommodation and Food Services declined, and Construction recorded a nearly flat figure with a 0.11 percent decline.
- Geographical hiring: The entire country experienced hiring declines in July, with the Northeast, Central, Southeast and West regions posting declines of 0.77 percent, 2.11 percent, 1.65 percent and 3.74 percent, respectively.
-
What’s next? According to the
National Federation of Independent Business , more employers than ever are hiring or attempting to hire workers. However, the ability to find qualified workers is their single-largest business concern. This could mean we are quickly approaching the final stages of slack in the labor market, and as participation reaches its maximum potential, given our workforce population, wages may begin to increase.
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