- After October decline, small businesses wait for election results
to determine future hiring -
CLEVELAND--(BUSINESS WIRE)--Nov. 4, 2016--
Small Business Employment Index (SBEI), a barometer for hiring trends
that surveys labor data from over 4,000 companies employing 300 or fewer
people, revealed a 1.61 percent month-over-month decrease in small
business hiring in October. This reading is the fourth consecutive
negative reading for the index and exceeds the average dip in hiring for
the month of October. The September
SBEI saw a decrease in hiring of 0.23 percent.
“Historically, October hiring has shown a decline among small
businesses; however, this October is well below the seasonal average of
the past five years,” says Philip
Noftsinger, president of CBIZ Employee Services Organization. “This
month’s reading indicates a shift away from sustaining headcounts as we
move into the holiday season, and with such a dramatic shift underway,
other macroeconomic metrics will play a major role in the Fed’s decision
to potentially hike rates in December.”
ADP and Moody’s Analytics reported 147,000 jobs were added in October,
falling below economists’ expectations of 165,000 gains. Looking toward
the NFIB Small Business Optimism report, it’s evident that small
business owners are skeptical about the strength of the economy until
the next White House occupant has been decided.
To view an infographic with data from the employment index, visit
the CBIZ blog.1
Additional takeaways from the October SBEI include:
October’s snapshot: In comparison to the September
reading, 20 percent of companies included in the index increased
headcounts, 50 percent made no change and 30 percent decreased their
staff count. While typically a negative month for small business
hiring on a non-seasonally adjusted basis, this reading is well below
the average for October of a 0.41 percent decrease.
Industries at a glance: Industry segments that showed growth in
October included Educational Services and Insurance. Meanwhile,
Agriculture, Arts & Entertainment, Real Estate, Retail, Accommodation,
Food Services and Professional Services recorded declines of greater
than one percent for the month.
Geographical Hiring: The West region was the only area of the
country that showed positive employment gains among small businesses.
The Central, Northeast and Southeast regions reported strong declines,
all of which were over 1.5 percent.
What’s next? Following a strong third-quarter GDP report last
week, the softness in hiring among small business owners is perplexing
as the two data points seem to contradict each other. However, the
election will have a large impact on how small business owners adjust
their headcounts going into the holiday shopping season and the New
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/20161104005057/en/
Source: CBIZ, Inc.
FCA for CBIZ,
Kelly Forst, 610-228-2396