Small Business Hiring Trends Upward in October
The CBIZ Small Business Employment Index signaled continued positive momentum for the labor market
“The increase in hiring reported in October is probably the result of a few contributing factors,” said
The ADP and Moody’s employment report indicated growth in hiring among small-, medium- and large-sized companies. Its October reading showed an overall increase of 571,000 private-sector jobs for the month, only a slight increase over the September report. Small businesses accounted for 115,000 of those new jobs on a seasonally adjusted, month-over-month basis. 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.
The CBIZ SBEI reported robust hiring in the West (2.09%) region for the second consecutive month, likely driven by its delayed economic reopening following the delta variant’s impact on the region. The Central (0.61%) region showed little change while still seeing positive growth. The Southeast (1.49%) and the Northeast (1.35%) both reported hiring increases.
On an industry level, the most notable increases were seen in Accommodations and Food Services, Construction, Retail, and Transportation. Non-profit, Professional Services, and Wholesale Distribution saw decreases in hiring.
“The vaccine mandates will likely continue to be a variable in hiring trends,” added Noftsinger. “As we approach the busy holiday shopping and travel season, the hope is that the growth momentum continues.”
To view an infographic with data from the employment index, visit the CBIZ website.
Additional takeaways from the October SBEI include:
October’s snapshot: 25% of companies in the index expanded employment, 53% made no change to their headcounts and 22% reduced staffing.
Industries at a glance: Hiring gains were seen in Accommodations and Food Services, Construction, Retail, and Transportation. Meanwhile, declines were reported in Non-profit, Professional Services, and Wholesale Distribution.
Geographical hiring: The Central (0.61%), Northeast (1.35%), Southeast (1.49%) and West (2.09%) regions all experienced hiring increases.
What’s next? Small businesses are continuing to grow as the economy rebounds to pre-pandemic levels. Vaccine mandates may play a continued role in labor trends.
The October CBIZ SBEI data follows the Q3 2021 release of the CBIZ Main Street Index, which surveyed nearly 2,000 businesses throughout the
*Note: Not all of those surveyed in the CBIZ Main Street Index are clients of CBIZ.
Editor’s note:
(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.
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