The January CBIZ Small Business Employment Index (SBEI), a barometer for hiring trends among companies with 300 or fewer employees, decreased by 2.75 percent during the past month, following an increase of 1.75 percent in December. Today’s announcement follows ADP’s January jobs survey, which illustrated that the private sector added 170,000 jobs in January. Philip Noftsinger, business unit president for CBIZ Payroll Services, explained, “January’s numbers express a decline in overall employment from December levels. Our SBEI is not seasonally adjusted; therefore our numbers for January are consistent with January 2011, which showed a decline of 2.62 percent versus 2.75 percent for January 2012.” Additional take-away points from the January data include:
- At-a-glance: Of the companies surveyed, the data shows that 34 percent reported a decrease in employee headcount while 18 percent increased staffing. 48 percent of the companies involved in the survey maintained their number of employees.
- Small business sector: A decline in hiring after the holiday season is to be expected as normal seasonal activity. Many business owners are still reluctant to bring on new employees due to continued uncertainty surrounding the economy.
- What-to-watch: We need to continue to see positive macro data to support the ongoing trend of mild job growth that we experienced in the fourth quarter of 2011. Prolonged job creation will ultimately depend on employer confidence and consumer spending.
For a month-by-month illustration of the Small Business Employment Index, please click here.Editor’s note: The United States Department of Labor’s Bureau of Labor Statistics Employment Situation Summary is due to be released on Friday, February 3, 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 company’s services are provided through more than 140 company offices in 36 states.