The CBIZ 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 SBEI’s gain reflects a continued strengthening in growth in small business employment and contrasts recent weakening reports from the private sector. ADP’s June jobs survey illustrated that the private sector added 176,000 jobs last month, which beat analysts’ estimates. However, May’s 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 month’s 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 it’s 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 week’s poor manufacturing data and another global slowdown precipitated by the ongoing European debt crisis.