The CBIZ Small Business Employment Index (SBEI), a barometer for hiring trends for more than 3,500 companies with 300 or fewer employees, declined by .57 percent during July, following a decrease of .21 percent in June.
In contrast, ADP’s July jobs survey illustrated that the private sector added more workers than initially anticipated with a total of 200,000 jobs, topping analysts’ estimates of 180,000 jobs. Additionally, employment gains for the month of June were unexpectedly revised upward to 198,000.
“The CBIZ Small Business Employment Index showed no signs of significant movement in either direction for the second month in a row,” says Philip Noftsinger, business unit president for CBIZ Payroll Services. “The number of companies reporting a positive change basically matched those reporting a negative change.”
To view and/or use a graphic illustration that tracks and illustrates the employment index, visit our blog here.¹Additional take-away points from the July data set include:
- At-a-glance: Of the companies surveyed, 24 percent increased staffing while 24 percent decreased staffing and 52 percent maintained their number of employees.
- Small business sector: Small business owners have the labor needed to meet existing demand, and until the consumer can re-enter the marketplace in terms of spending, we will continue to be stuck in a slow growth mode from a jobs perspective.
- What to watch: Small business owners continue to operate with a skeptical eye for the future. They’re unwilling or unable to make investments that will support economic growth as they see no clear fiscal policy direction. In addition, they are not able to point to macro economic factors that would indicate greater demand in the future.