Market Overview

CBIZ Small Business Employment Index Highlights Historical October Flattening Trend

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- Small business owners refrain from employment changes following
September's decrease in hiring -

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 0.52 percent in
October, following a decrease in hiring of 2.45 percent in September.

"The October reading of the SBEI followed historical trends for this
period by showing a flat reading," says Philip
Noftsinger
, Executive Vice President, CBIZ Employee Benefits.
"Employment growth in October tends to level off after the loss of
part-time workers from the summer months, and before the influx of
seasonal workers around the holiday shopping season."

ADP and Moody's Analytics reported Thursday that the private sector
posted an employment increase of 227,000 jobs month-over-month on a
seasonally adjusted basis. Small businesses accounted for 29,000 of
those jobs and the report found that all sectors reported an increase.

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

Additional takeaways from the October SBEI include:

  • October's snapshot: When compared to the September SBEI
    reading, 25 percent of companies increased their headcounts, 49
    percent refrained from making labor changes, and 26 percent decreased
    their employee totals. Since the SBEI's inception in June 2009, the
    October reading has seen an average hiring decrease of 0.54 percent,
    an essentially flat reading; and this year's reading is the
    third-largest decrease during the October period.
  • Industries at a glance: Of the industries reflected in the
    index, Finance and Insurance, Utilities, and Technology and Life
    Sciences posted job growth. Meanwhile, Construction, Non-Profits, and
    Accommodation and Foodservices industries posted declines.
  • Geographical hiring: In October, the West, Northeast and
    Central regions experienced hiring decreases of 1.75 percent, 0.86
    percent and 0.6 percent, respectively. The Southeast demonstrated a
    hiring increase of 0.63 percent.
  • What's next? With the October report falling right in line with
    seasonal trends and the election just a week away, the November report
    will better determine any discernible reaction in hiring trends by
    small business owners as the economy continues to demonstrate strong
    growth.

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
or on 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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