Small Business Employment Index Surges in December
Largest Gain in Two Years Revealed; Global Fears Remain
CLEVELAND--(BUSINESS WIRE)-- The December CBIZ (CBZ) Small Business Employment Index (SBEI), a barometer for hiring trends among companies with 300 or fewer employees, increased by 1.75 percent throughout the past month, following an increase of .35 percent in November.
Todays announcement follows ADPs December jobs survey, which illustrated that the private sector added 325,000 jobs in December.
Philip Noftsinger, business unit president for CBIZ Payroll Services, explained, Our Small Business Employment Index reported a 1.75 percent gain in distinct employee count for the month of December. This represents the largest increase in the index in two years as December 2009 offered a similar tally of 1.77 percent. Additionally, the positive movement in the index supports a continued improving trend in labor markets.
Additional take-away points from the December data include:
- At-a-glance: Of the companies surveyed, the data shows that 19 percent reported a decrease in employee headcount while 30 percent increased staffing. 51 percent of the companies involved in the survey maintained their number of employees.
- Small business sector: Confidence among small business owners is increasing, with a sustained focus on demand and cost containment. If demand can continue to grow, even minimally, for our Main Street employers, we can expect continued positive growth numbers in the index.
- What-to-watch: As employment begins to sustain a positive trend, this will be the best support for economic growth in the US. However, there are still very real concerns for global sustained growth, specifically in the European region and in China.
We need to continue to see positive, or at least fair global macro news through the first quarter, otherwise the latest trend may not last through June 2012, said Noftsinger.
Currently, CBIZ Payroll Services manages payroll services for more than 3,000 businesses that employ fewer than 300 people. The sample reflects a broad array of industries and geographies corresponding to the markets across the United States where CBIZ provides services.
For a month-by-month illustration of the Small Business Employment Index, please click here.
Editors note: The United States Department of Labors Bureau of Labor Statistics Employment Situation Summary is due to be released on Friday, January 6, at 8:30 a.m. Mr. Noftsinger is available for media interviews to discuss employment trends and other payroll matters impacting the American business environment.
About CBIZ, Inc. (NYSE:CBZ)
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 and consulting, internal audit, merger and acquisition advisory and valuation services. Employee services include employee benefits consulting, property and casualty insurance, retirement plan consulting, payroll, life insurance, HR consulting, and executive recruitment. CBIZ also provides outsourced technology staffing and support services, healthcare consulting, and medical practice management. As one of the largest benefits specialists and one of the largest accounting, valuation, and medical practice management companies in the United States, the Companys services are provided through more than 140 Company offices in 36 states.
Source: CBIZ, Inc.Copyright Business Wire 2012