Small Business Hiring Trends End the Year on a Positive Note
The CBIZ Small Business Employment Index reports a bounce back from November declines, as small businesses close 2020 with signs of optimism
“The data indicates that small businesses weathered the third COVID-19 surge in December, and we expect positive trends to continue into early 2021, with vaccine optimism likely to bolster consumer sentiment through the early part of the year,” said
Data from the ADP and Moody’s employment report was not as bullish as the CBIZ SBEI. According to the ADP and Moody’s data, private-sector jobs dropped by 123,000 on a month-over-month, seasonally adjusted basis. Small business jobs, in particular, decreased by 13,000. The ADP and Moody’s report counts small businesses as companies with 49 or fewer employees, while the CBIZ SBEI uses data from companies with 300 employees or fewer.
Breaking the data down by region, hiring declined mildly in the
Although some industries increased hiring, growth did not occur across the board. Hiring climbed in Healthcare, Financial Services, Real Estate, Non-Profits and Retail Trade, yet decreased in Technology and Life Sciences, Transportation, and Accommodation and Food Services. The negative trend in Accommodation and Food Services could stem from renewed COVID-19 restrictions.
“Based on the current vaccination rate in the
To view an infographic with data from the employment index, visit the CBIZ website.
Additional takeaways from the December SBEI include:
December’s snapshot: 27.63% of companies in the index added to staffing, 51.52% maintained headcounts and 20.85% decreased employment.
Industries at a glance: Hiring fared favorably for Healthcare, Financial Services, Real Estate, Non-Profits and Retail Trade. This was not the case for Technology and Life Sciences, Transportation, and Accommodation and Food Services, where hiring receded.
Geographical hiring: Only the
What’s next? Moving past the holiday shopping season, consumer sentiment remains key, and the COVID-19 vaccination rate will likely help determine small business hiring trends in 2021.
(1) The SBEI illustration is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License. Based on our work at https://www.cbiz.com.