CBIZ Small Business Employment Index Indicates Hiring Increase in May
Business Wire 7-Jun-2019 7:45 AM
Return of seasonal workers drives hiring across all regions of the
country
The CBIZ Small Business Employment Index (SBEI) reported that small
businesses, classified as having 300 or fewer employees, showed an
increase in month-by-month hiring by 0.49% in May.
Philip
Noftsinger, Executive Vice President, CBIZ Employee Benefits,
attributes these gains to the return of seasonal workers throughout all
regions of the country. Arts and Entertainment, Transportation, Real
Estate, Retail Trade, Construction, Accommodation and Food Services, and
Insurance and Financial Services were among the industries that
increased hiring during the month. Rental and Leasing Services was the
only industry category showing a decline.
"May is typically a strong month for hiring. This has held true for
another year, especially due to the traditional return of seasonal
workers," says Noftsinger. "But we could face some headwinds as the
heated trade war talks with China and potentially Mexico might impact
the small business sector in the coming months."
ADP and Moody's reported Wednesday that May saw a decrease of 52,000
private small business jobs compared to April. However, the ADP and
Moody's report classifies small businesses as companies with 49 or fewer
employees.
The CBIZ SBEI tracks hiring trends for over 3,700 companies that have
300 or fewer employees, providing a broader insight into small business
trends. CBIZ Inc. provides payroll management services for thousands of
companies throughout the country.
To view an infographic with data from the employment index, visit
the CBIZ blog.1
Additional takeaways from the May SBEI include:
-
May's snapshot: When compared to the April SBEI, 30% of
companies increased headcounts, 51% refrained from making labor
changes and 19% decreased employee totals. Since the SBEI's inception
in June 2009, the May reading has seen an average hiring increase of
1.12%.
-
Industries at a glance: Of the industries featured in the
index, Arts and Entertainment, Transportation, Real Estate, Retail
Trade, Construction, Accommodation and Food Services, Insurance and
Financial Services all showed gains. Rental and Leasing Services was
the only industry category showing a decline.
-
Geographical hiring: In May, all four regions showed
improvement. Hiring increases in the Northeast grew by 2.24%, the
Central by 1.98%, the Southeast by 1.18% and the West by 0.63%.
-
What's Next? There is talk about the impact of trade war talk
with China and now Mexico and its impact on the domestic economy and
growth. We will continue to watch the macro environment and any affect
on small businesses.
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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