CBIZ Small Business Employment Index Reflects a Seasonal Reduction in Employment This January
- Small businesses cut back on headcounts following the holiday season -
“While hiring among small businesses took a sizeable dive in January, we
believe this decrease is largely in line with seasonal expectations as
employers slim down headcounts following the holidays,” says
Looking more broadly, ADP and Moody’s Analytics reported Wednesday that businesses of all sizes added 234,000 jobs in January, a strong report compared to economists’ expectations of 190,000 additions in the period.
To view an infographic with data from the employment index, visit
the
Additional takeaways from the January SBEI include:
-
January’s snapshot: Compared to the
December 2017 reading of the SBEI, 19 percent of companies in the index increased headcounts, 46 percent did not change their staff totals and 35 percent reduced the size of their staff. Since the SBEI’s inception nine years ago, the January period has always posted a negative figure, averaging a decrease of 2.92 percent. - Industries at a glance: Every industry tracked by the SBEI experienced staff reductions. The largest cuts were experienced by companies in the Arts & Entertainment, Technology, Retail Trade, Accommodation and Food Services, and Wholesale Distribution industries.
- Geographical hiring: Similarly, all four regions experienced hiring falloffs, as well. The Southeast came in at the top with a decrease of 3.86 percent. The Northeast, Central and West regions experienced declines of 3.23, 2.96 and 2.66 percent, respectively.
- What’s next? The impact of tax reform will take some time to realize, especially for unincorporated businesses that realize their tax burdens through their individual tax returns. Historically, tax cuts have been implemented in recessionary periods to stimulate the economy and battle unemployment. However, this time, the U.S. economy is in a growth cycle and at or near full employment. While corporate tax cuts are typically good for hiring, the labor supply is already tight, and it remains to be seen how low unemployment can go.
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/20180202005078/en/
Source:
Gregory
FCA for CBIZ,
Inc.
Kelly Forst, 610-228-2396
kellyf@gregoryfca.com