CBIZ Small Business Employment Index Continues to Climb In June
- Index Shows Third Month of Growth For Small Business Sector -
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 1.38 percent during June, following an increase of 1.34 percent in May. The SBEIs gain reflects a continued strengthening in growth in small business employment and contrasts recent weakening reports from the private sector.
ADPs June jobs survey illustrated that the private sector added 176,000 jobs last month, which beat analysts estimates. However, Mays revised tally of 136,000 added jobs was well below analysts estimates.
CBIZ Payroll Services manages payroll services for more than 3,000 businesses. The survey 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.
The SBEI for June 2012 continues to show solid growth in employment by businesses with fewer than 300 employees. This runs counter to many of the other employment metrics that are showing stagnation or modest decline, commented Philip Noftsinger, business unit president for CBIZ Payroll Services. This months positive number represents three months in a row of positive employment growth in this sector, he continued.
To view and/or use a graphic illustration that tracks and illustrates the employment index, visit our blog here.¹ Additional take-away points from the June data set include:
- At-a-glance: Of the companies surveyed, the data shows that 29 percent reported an increase in employee headcount while 20 percent decreased staffing. 51 percent of the companies involved in the survey maintained their number of employees.
- Small business sector: The domestic economy has been stable through the first two quarters of 2012, so its likely that many of these smaller employers are benefiting from a steady domestic situation as well as the summer travel season.
- What-to-watch: Concerns that might disrupt this trend are this weeks poor manufacturing data and another global slowdown precipitated by the ongoing European debt crisis.
We will also continue to watch for any impacts related to the looming tax increases scheduled to change on January 1, 2013. With the Supreme Court ruling that the Patient Protection and Affordable Care Act (ACA) remains in-force, small business owners have a clearer picture of what to expect. The more predictable the business environment, the more likely business owners will invest. Companies like CBIZ are uniquely positioned to help the small business owner navigate all corners of health care reform- from tax, to benefits, to payroll, to dealing with human capital, 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 domestic economic trends.
(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.
(2) The United States Department of Labors Bureau of Labor Statistics Employment Situation Summary is due to be released on Friday, July 6, at 8:30 a.m. ET. 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 130 Company offices in 37 states.
Source: CBIZ, Inc.Copyright Business Wire 2012