- Index Shows Third Month of Growth For Small Business Sector -
CLEVELAND--(BUSINESS WIRE)--Jul. 6, 2012--
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.
“We will also continue to watch for any impacts related to the looming
tax increases scheduled to change on January 1, 2013. With the Supreme
Court ruling that the Patient Protection and Affordable Care Act (ACA)
remains in-force, small business owners have a clearer picture of what
to expect. The more predictable the business environment, the more
likely business owners will invest. Companies like CBIZ
are uniquely positioned to help the small business owner navigate all
corners of health care reform- from tax, to benefits, to payroll, to
dealing with human capital,” said Noftsinger.
The small business sector of the economy continues to attract headline
coverage as our leadership and political and economic pundits stress
that the small business owner is the driving force of the
economy. The SBEI is focused on this portion of our economy and is a
critical component to understanding domestic economic trends.
Editor’s notes:
(1) The SBEI illustration is licensed under a Creative Commons
Attribution-NoDerivs 3.0 Unported License. Based on a work at http://blog.cbiz.com.
(2) The United States Department of Labor’s Bureau of Labor
Statistics Employment Situation Summary is due to be released on Friday,
July 6, at 8:30 a.m. ET. Mr. Noftsinger is available for media
interviews to discuss employment trends and other payroll matters
impacting the American business environment.
About CBIZ,
Inc. (NYSE:CBZ)
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 and consulting,
internal audit, merger and acquisition advisory and valuation
services. Employee services include employee benefits consulting,
property and casualty insurance, retirement plan consulting, payroll,
life insurance, HR consulting, and executive recruitment. CBIZ also
provides outsourced technology staffing and support services, healthcare
consulting, and medical practice management. As one of the largest
benefits specialists and one of the largest accounting, valuation, and
medical practice management companies in the United States, the
Company’s services are provided through more than 130 Company offices in
37 states.
Source: CBIZ, Inc.
Gregory
FCA for CBIZ,
Inc.
Jimmy Moock
Phone: 610-228-2125
Cell:
610-348-7849
Email: jimmy@gregoryfca.com
