Market Overview

CBIZ Small Business Employment Index Reveals Typical November Flattening Trend

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- Small businesses refrain from employment changes ahead of likely
hiring increases for holiday season -

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 increase in hiring of 0.48 percent in
November, following a decrease in hiring of 0.52 percent in October.

"Historically, the November SBEI has always been a flat reading and this
November followed that trend," says Philip
Noftsinger
, Executive Vice President, CBIZ Employee Benefits. "It's
not uncommon for small businesses to resist hiring seasonal employees
too early, in order to gauge consumer sentiment and demand during this
high season."

ADP and Moody's Analytics reported Wednesday that the private sector
posted an employment increase of 179,000 jobs month-over-month on a
seasonally adjusted basis. Small businesses accounted for 46,000 of
those jobs and the report found that almost every sector reported an
increase.

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

Additional takeaways from the November SBEI include:

  • November's snapshot: When compared to the October SBEI reading,
    26 percent of companies increased their headcounts, 51 percent
    refrained from making labor changes, and 23 percent decreased their
    employee totals. Since the SBEI's inception in June 2009, the November
    reading has seen an average hiring decrease of 0.12 percent, an
    essentially flat reading; and this year's reading is the third-largest
    increase during the November period.
  • Industries at a glance: Of the industries reflected in the
    index, Administrative and Support Services, Non-Profits, Educational,
    and Healthcare posted job growth. Conversely, Agriculture,
    Professional Services, and Financial Services posted declines.
  • Geographical hiring: In November, the Northeast and Central
    regions experienced hiring decreases of 0.41 and 0.12 percent,
    respectively. Meanwhile, the West and Southeast demonstrated hiring
    increases of 4.16 and 0.66 percent, respectively.
  • What's next? The November report fell right in line with
    seasonal trends, which indicates the December report will reveal any
    noticeable reaction in hiring trends as small business owners adjust
    to consumer sentiment during the holiday season.

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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