CBIZ Small Business Employment Index Shows Slim Gain for April
CBIZs Index Reflects Slight Uptick Tempering Job Growth Expectations
CLEVELAND--(BUSINESS WIRE)-- The CBIZ (CBZ) Small Business Employment Index (SBEI), a barometer for hiring trends among companies with 300 or fewer employees, increased by .05 percent during April, following an increase of 1.66 percent in March. The uptick reflects the prognosis for sluggish growth in employment and follows a disappointing report on private sector job growth from ADP.
ADPs April jobs survey that illustrated that the private sector added 119,000 jobs last month, which was below estimates.
CBIZ Payroll Services manages payroll services for more than 3,000 businesses that employ fewer than 300 people. The survey reflects a broad array of industries and geographies corresponding to the markets across the United States where CBIZ provides services. The data represented by the CBIZ Small Business Employment Index is derived from a segment of employers not wholly accounted for by the ADP and Federal BLS employment reports.
Philip Noftsinger, business unit president for CBIZ Payroll Services, offered, The April CBIZ SBEI shows no material gain in employment. However, the data did show an increase of .05 percent for companies processing payrolls in both March and April 2012. As we look across the economy overall, this result is consistent with other metrics we are following.
Additional take-away points from the April data include:
- At-a-glance: Of the companies surveyed, the data shows that 22 percent reported an increase in employee headcount while 25 percent decreased staffing. 53 percent of the companies involved in the survey maintained their number of employees.
- Small business sector: Recent BLS data sets have shown a deceleration in hiring at all levels and it would appear that small businesses are matching that trend.
- What-to-watch: With so much attention being placed on new business, the small business owner is finely tuned to capacity needs related to imminent demand. There is very little hiring in anticipation of longer range prospective demand.
What this also translates to is a more strategic hiring practice. Individuals who lack experience or specific skills may not be considered for positions, as the employer would have to spend time training those employees. Small business owners are likely looking for new associates who can provide immediate productivity in the function that needs attention, said Noftsinger.
The small business sector of the economy continues to attract headline coverage as our leadership and political and economic pundits stress that the small business owner is the driving force of the economy. The SBEI is focused on this portion of our economy and is a critical component to understanding economic trends in this small private sector.
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, May 4, 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 today and tomorrow.
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 130 Company offices in 37 states.
Source: CBIZ, Inc.Copyright Business Wire 2012