Market Overview

CBIZ Small Business Employment Index Follows Historical Summer Decline for July

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- Small business hiring decreases as summer staffing needs lessen -

The CBIZ
Small Business Employment Index (SBEI), which tracks hiring trends among
thousands of companies that employ 300 or fewer employees across the
U.S., reported a month-over-month decrease in hiring of 2.03 percent in
July, following an increase in hiring of 1.73 percent in June.

"July historically shows a seasonal decline in hiring as employers reach
full staffing for the requisite summer months' demand," says Philip
Noftsinger
, Executive Vice President at CBIZ Employee Benefits.
"However, this July represents a larger decline than most, indicating
there may be more at work. That statistic doesn't necessarily mean that
the economic growth cycle is at an end, however."

ADP and Moody's Analytics reported Wednesday that the private sector
posted an employment increase of 219,000 month-over-month, on a
seasonally adjusted basis. Small businesses accounted for 52,000 of
those jobs and the report found that almost all sectors and industries
reported an increase.

To view an infographic with data from the employment index, visit
the CBIZ blog.1

Additional takeaways from the July SBEI include:

  • July's snapshot: When compared to the June reading, 21 percent
    of companies increased their headcounts, 49 percent refrained from
    making labor changes, and 30 percent decreased their employee totals.
    Since the SBEI's inception in June 2009, the July reading has seen an
    average hiring decrease of 0.99 percent, and this year's reading is
    the second-largest decline during the July period.
  • Industries at a glance: Of the industries reflected in the
    index, Agriculture grew notably, which is common during the summer
    months, followed by Insurance and Wholesale Distribution. Meanwhile,
    Transportation, Education, Non-Profits, and Accommodation and Food
    Services declined, and Construction recorded a nearly flat figure with
    a 0.11 percent decline.
  • Geographical hiring: The entire country experienced hiring
    declines in July, with the Northeast, Central, Southeast and West
    regions posting declines of 0.77 percent, 2.11 percent, 1.65 percent
    and 3.74 percent, respectively.
  • What's next? According to the National Federation of
    Independent Business, more employers than ever are hiring or
    attempting to hire workers. However, the ability to find qualified
    workers is their single-largest business concern. This could mean we
    are quickly approaching the final stages of slack in the labor market,
    and as participation reaches its maximum potential, given our
    workforce population, wages may begin to increase.

CBIZ Payroll Services manages payroll services for more than 4,000
businesses. Its index reflects a broad array of industries and
geographies corresponding to the markets across the U.S. 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 Bureau of Labor Statistics employment reports.

Editor's note:

(1) The SBEI illustration is licensed under a Creative Commons
Attribution-NoDerivs 3.0 Unported License. Based on our work at
http://www.cbiz.com/insights-resources/blog.

Follow CBIZ on Twitter at @CBZ
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Facebook.

About CBIZ, Inc.

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, financial advisory,
government health care consulting, risk advisory, real estate consulting
and valuation services. Employee services include employee benefits
consulting, property and casualty insurance, retirement plan consulting,
payroll, life insurance, HR consulting and executive recruitment. As one
of the largest accounting, insurance brokerage and valuation companies
in the United States, the company's services are provided through more
than 100 company offices in 33 states. CBIZ Employee Services
Organization is a division of CBIZ Benefits & Insurance Services, Inc.

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