Small Business Hiring Plummets in July, According to CBIZ Small Business Employment Index
- SBEI records a significant decrease in hiring of 2.26 percent in July, a sharp decline from the prior month’s positive reading -
“Small businesses are yet to demonstrate their desire to hire employees
on a consistent basis and are instead hiring in pulses,” says
ADP and Moody’s Analytics’ reported that the economy added 178,000 jobs in July, falling below economists’ expectations of 190,000.
To view an infographic with data from the employment index, visit
the
Additional takeaways from the July SBEI include:
- July’s snapshot: Compared to the June reading of the SBEI, 49 percent of companies refrained from making employment changes, 31 percent cut headcounts while only 19 percent increased their employee totals. This reading of the SBEI is the largest decline during the July period, which averages at a 0.87 percent decrease.
- Industries at a glance: Industries posting positive growth include Agriculture and Financial Services. However, a much larger group of industries’ hiring fell below zero, headlined by Non-Profits, Accommodations, Food Services, Technology, Life Sciences, Retail and Healthcare. Construction, an important industry for employment growth, posted a slight decrease for the month.
- Geographical hiring: The West region took a hiring hit, resulting in a decline of 4.36 percent, followed by the Central region with a 2.38 percent decline in hiring. The Southeast, posted a decrease of 1.7 percent and the Northeast region decreased 0.54 percent.
-
What’s next? A lack of sustained economic growth paired with
inaction on
Capitol Hill will yield uncertainty, and small business owners may be hesitant to make hiring decisions. In order for sustained labor market growth to occur, clarity must emerge surrounding fiscal policy changes in addition to continued macroeconomic growth.
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
Editor’s note:
(1) The SBEI Illustration is licensed under a
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170804005055/en/
Source:
Gregory
FCA for CBIZ,
Inc.
Kelly Forst, 610-228-2396
kellyf@gregoryfca.com