CBIZ Small Business Employment Index Stays Hot This June
July 06 2018 - 7:45AM
Business Wire
- Small business owners continue to hire as the
Main Street economy remains strong -
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 month-over-month increase in
hiring of 1.73 percent in June, following an increase in hiring of
1.78 percent in May.
“So far this summer, we’ve experienced two periods of
substantial hiring increases, which likely signifies a growing
trend in small business hiring,” says Philip Noftsinger, Executive
Vice President, CBIZ Employee Benefits. “With a tightening labor
market, it’s possible that we could see hiring slow over the next
few months, but whether or not that occurs really is dependent upon
how much slack remains in the labor market.”
ADP and Moody’s Analytics reported Wednesday that the private
sector posted an employment increase of 177,000 from May to June,
on a seasonally adjusted basis. Small businesses accounted for
29,000 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 CBIZ blog.1
Additional takeaways from the June SBEI include:
- June’s snapshot: When compared
to the May SBEI reading, 31 percent of companies increased their
headcounts, 48 percent refrained from making labor changes, and 21
percent decreased their employee totals. Since the SBEI’s inception
in June 2009, the June reading has seen an average hiring increase
of 0.92 percent; and this year’s reading is the second largest
during the June period.
- Industries at a glance: A wide
swath of industries grew in this period, but Agriculture, Technical
Services, Arts and Entertainment, and Construction grew notably.
The only industry that declined significantly was Education, due to
the seasonal nature of the profession.
- Geographical hiring: Only one
region declined during the June period while the rest realized
notable increases. The Northeast grew 3.2 percent, the Central
region grew 2.01 percent and the Southeast grew 1.32 percent.
Meanwhile, the West region declined 0.56 percent.
- What’s next? As trade-war talks
continue, the impact hasn’t yet made its way to the main street
economy. However, if trade concerns continue to escalate, we may
see the effect trickle down to small business owners and their
hiring decisions over time.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180706005050/en/
Gregory FCA for CBIZ, Inc.Kelly Forst,
610-228-2396kellyf@gregoryfca.com
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