Small Business Hiring Falls Throughout Third Quarter, According to CBIZ Small Business Employment Index
October 06 2017 - 7:45AM
Business Wire
- SBEI records a decrease in hiring of
0.35 percent in September, following significant declines in August
and July -
The CBIZ Small Business Employment Index (SBEI), which tracks
hiring trends among thousands of companies that employ 300 or fewer
employees across the U.S., reported a decrease in hiring activity
of 0.35 percent this September. This is the third consecutive
negative monthly reading of the SBEI, following a decline of 2.27
percent in August.
“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 Philip Noftsinger,
President of CBIZ Employee Services Organization. “Typically, the
September period sees an employment drop off as seasonal businesses
begin the process of reducing staff or closing for the winter.”
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 CBIZ blog.1
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
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.
Editor’s note:
(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.
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
largest accounting, insurance brokerage and valuation companies in
the United States, the Company’s services are provided through more
than 100 Company offices in 33 states. CBIZ Employee Services
Organization is a division of CBIZ Benefits & Insurance
Services, Inc.
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version on businesswire.com: http://www.businesswire.com/news/home/20171006005048/en/
Gregory FCA for CBIZ, Inc.Kelly Forst,
610-228-2396kellyf@gregoryfca.com
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