CBIZ Small Business Employment Index Shows Slowing Labor Recovery

June 3, 2011
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Small Business Hiring Pace Slows, Revealing Pause in Recovery's Momentum

CLEVELAND, Jun 03, 2011 (BUSINESS WIRE) --

The May CBIZ Small Business Employment Index, a barometer for hiring trends among companies with 300 or fewer employees, increased by 0.22 percent through the month, after posting an increase of 1.35 percent in April.

Philip Noftsinger, business unit president for CBIZ Payroll Services, says, "Labor reports continue to produce results that demonstrate a struggling marketplace. The SBEI numbers for May represent a no-change result, giving pause to those overly optimistic that an accelerating recovery is close at hand."

Additional take-away points from the May data set include:

  • At a glance: Of the companies that were surveyed, the data shows that 23 percent increased employee headcount while 23.5 percent reported a decrease in staffing. 53.5 percent of the companies involved in the survey maintained their number of employees.
  • Small business sector: Consistent withthe United States Bureau of Labor Statistics (BLS), the small business sector, which historically leads to longer-term economic growth, continues to struggle and has yet to show sustained additions.
  • What to watch: Will the summer months provide the economy with improved consumer spending, which could be advantageous for the overall labor market recovery? Or might severe weather spell difficulties for some small business owners?

"As the season changes to summer, we will watch closely to see if increased consumer spending can add fuel to the labor market and accelerate the recovery," Noftsinger adds.

Currently, CBIZ Payroll Services manages payroll services for approximately 3,000 businesses that employ fewer than 300 people. The sample reflects a broad array of industries and geographies corresponding to the markets across the United States where CBIZ provides services.

Noftsinger is available for media interviews to discuss small to mid-market employment trends and other payroll matters impacting the American small business environment.

For a month by month illustration of the Small Business Employment Index, please click here.

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 and tax, internal audit, merger and acquisition advisory and valuation services. Employee services include group benefits, property and casualty insurance, retirement planning, payroll, HR consulting and wealth management. CBIZ also provides outsourced technology staffing 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 150 offices in 36 states.

SOURCE: CBIZ, Inc. 

Gregory FCA for CBIZ, Inc.
Jimmy Moock, 610-228-2125
Jimmy@GregoryFCA.com