- After an October decline, the SBEI rebounds to follow historically
flat hiring pattern in November-
CLEVELAND--(BUSINESS WIRE)--Dec. 2, 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, posted a .17 percent decline after data showed that almost an
identical number of companies cut staffing as those that grew headcount.
While virtually neutral, the reading is the fifth consecutive negative
reading for the index as the October
SBEI saw a decrease in hiring of 1.61 percent.
“November has historically been a flat month for payroll changes, as the
average reading for the past five years has seen no greater than a .1
percent decrease,” says Philip
Noftsinger, president of CBIZ Employee Services Organization. “One
of the big seasonal influences on payrolls can be the holiday shopping
and entertainment season, and those in hospitality and retail have
already hired most of their part-time help, so a flat reading for the
month indicates the holiday season is meeting expectations thus far.”
ADP and Moody’s Analytics reported 216,000 jobs were added in,
significantly beating economists' expectations of 165,000 gains.
To view an infographic with data from the employment index, visit
the CBIZ blog.1
Additional takeaways from the November SBEI include:
November's snapshot: In comparison to the October
reading, 24.4 percent of companies included in the index increased
headcounts, 51 percent made no change and 24.6 percent decreased their
staff count. On average, the November readings for the SBEI shows a
.27 percent decline going back to the index’s inception in 2009.
Industries at a glance: Industry segments that showed the
largest gains in employment include Information Management,
Technology, Business Services, Insurance and Non-Profits. The largest
declines were seen in Agriculture, Arts and Entertainment and
Utilities. More so, the Non-Profit and Agriculture industries fell in
line with expected seasonal trends.
Geographical Hiring: The Central region was the most negatively
impacted area of the country, registering a 0.69 percent decline,
while the East region realized minimal impact at 0.01 percent decline.
The Southeast and West regions grew slightly, showing 0.27 percent and
1.5 percent growth respectively.
What’s next? Small business owners are withholding labor market
optimism following the Presidential election. Despite subsiding
uncertainty surrounding the political landscape and its effect on
fiscal policies, labor market improvements are more focused around
core business and economic metrics. Ultimately, the impact of Trump’s
election on the labor markets is yet to be seen. And, as the Fed
ponders a potential rate increase in December, small business owners
are waiting to act until the economic picture comes into focus for
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
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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/20161202005099/en/
Source: CBIZ, Inc.
FCA for CBIZ,
Kelly Forst, 610-228-2396