– A tightening labor market influences small business hiring –
CLEVELAND–(BUSINESS WIRE)–The CBIZ
Small Business Employment Index (SBEI), which tracks hiring trends among
thousands of companies that employ 300 or fewer employees across the
U.S., reported a month-over-month seasonally adjusted decrease in hiring
of 0.42% in April, following an increase in hiring of 0.16% in March.
“April is historically a month where small business employment hovers
around the flat range,” says Philip
Noftsinger, Executive Vice President, CBIZ Employee Benefits. “This
April followed historical trends, although it fell slightly below past
readings for the same time period. This could be a result of the
tightening labor market, as employers continue to search for qualified
candidates to keep up with growing demand.”
ADP and Moody’s Analytics reported Wednesday that the private sector
posted an increase of 275,000 jobs month-over-month on a seasonally
adjusted basis. Small businesses accounted for 77,000 of those jobs.
To view an infographic with data from the employment index, visit the CBIZ
blog.1
Additional takeaways from the April SBEI include:
-
April’s snapshot: When compared to the March SBEI, 23% of
companies increased headcounts, 53% refrained from making labor
changes and 24% decreased employee totals. The April seasonally
adjusted reading has averaged a hiring decrease within the small
business sector. -
Industries at a glance: Of the industries featured in the
index, Arts and Entertainment, Construction, Wholesale Distribution,
and Accommodation and Food Services posted job growth. Declining
industries this period were Educational Services, Professional
Services, Healthcare, Manufacturing and Retail. -
Geographical hiring: In April, the Central and Northeast
regions experienced hiring increases, while the West showed a mild
decline and the Southeast demonstrated a flat reading. -
What’s next? Continued economic strength, pulling against a
tight labor market should continue to bolster wages as we enter the
spring and summer. Future growth remains dependent upon a favorable
macro environment, but also improvements in our labor capacity either
through technology or labor population participation and 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 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.
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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.
Contacts
Simone Brownlee
Desk: 610-228-2096
[email protected]
Gregory
FCA for CBIZ,
Inc.
