News Column

Small Businesses Added Jobs in May

June 3, 2014

Staff Reports --

Small-business owner (file photo)
Small-business owner (file photo)

Small businesses added 35,000 jobs in May, the largest monthly increase in over a year, according to Intuit's May Small Business Indexes. The monthly report looks into hiring and revenue trends of U.S. businesses with fewer than 20 employees.

Some 231,000 small-business customers of Intuit Online Payroll and QuickBooks Online Payroll indicated they increased employment by 0.17 percent from April 24-May 23.

"This month's employment increase is the largest we've seen in more than a year," said Susan Woodward, the economist who works with Intuit to create the indexes. "In addition to the impressive increase of jobs this month, the hiring rate is also at the highest level we've seen since early 2009."

Small-business revenues continued to grow, though slowly, by about 0.25 percent, according to the company's Revenue Index. That index is based on anonymized aggregated data from over 150,000 QuickBooks Online small businesses, according to a news release.

The May indexes also showed monthly pay at small companies rose by $17, to about $2,804. Hours worked per month rose by 0.8 percent, while revenues at small business rose 0.2 percent.

Employees at small businesses worked just under 26 hours a week on average and earned $15.90 an hour, for an annual equivalent of about $33,600.

The professional and technical services and other services categories saw the greatest increase in revenue, at 0.3 percent.

"This increase in small business activity could be credited to the spike in homebuilding," Ms. Woodward said. "Housing starts grew from 947,000 units in March to 1,072,000 units in April, an increase of about 13 percent."

However, the real estate sector saw the greatest decrease, at 0.3 percent.

The federal employment numbers are due out on Friday.

For more stories on small businesses and entrepreneurs, please see HispanicBusiness' Entrepreneur Channel

Source: (c) 2014. All rights reserved.

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