-Best July for Small Business Payroll Data in Six Years-At-a-glance: Slightly more than a quarter of the firms
reporting added staff during the July period, while just under 24
percent cut staff headcount. The remainder of the businesses
(approximately 51 percent) kept employee counts static month over
Seasonality of hiring: Realizing that the SBEI is not
seasonally adjusted, it is reasonable to assume that our small
business employers believed that their current labor levels were
sufficient to meet demand during the period, indicating that demand
levels had not changed from June to July.
Small Business Employment Index (SBEI), a barometer for hiring
trends that surveys data from 3,500 companies with 300 or fewer
employees, decreased by .08 percent during the month of July. While the
index is essentially flat for the month, the number is the best reading
for the July period in six years.
The four previous SBEI reports all reported growth, which is consistent
with other macro numbers showing that Main Street is cautiously
re-entering the labor market, as consumer demand slowly picks up.
“I am very pleased and optimistic about the four consecutive positive
months ranging from March through June 2014, coupled with what is
essentially a ‘no change’ in July. The reality is that more companies
added staff versus those that reduced payroll headcount,” says Philip
Noftsinger, business unit president for CBIZ Payroll Services. “Looking
ahead, we can expect a more negative employment picture in September as
part-time labor begins to wind down off the summer months, and we
prepare for the holiday shopping season.”
Additional take-away points from the July SBEI jobs numbers include:
CBIZ Payroll Services manages payroll services for more than 3,500
businesses. Its index reflects a broad array of industries and
geographies corresponding to the markets across the United States 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 a work at http://blog.cbiz.com.
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 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 nearly 100 Company offices in 34 states. http://cbiz.com
FCA for CBIZ,
Brittany Liberatore, 610-228-2094
Source: CBIZ, Inc.