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 increase in hiring of 0.48 percent in November, following a decrease in hiring of 0.52 percent in October.
Historically, the November SBEI has always been a flat reading and this November followed that trend, says Philip Noftsinger, Executive Vice President, CBIZ Employee Benefits. Its not uncommon for small businesses to resist hiring seasonal employees too early, in order to gauge consumer sentiment and demand during this high season.
ADP and Moodys Analytics reported Wednesday that the private sector posted an employment increase of 179,000 jobs month-over-month on a seasonally adjusted basis. Small businesses accounted for 46,000 of those jobs and the report found that almost every sector reported an increase.
To view an infographic with data from the employment index, visit the CBIZ blog.1
Additional takeaways from the November SBEI include:
- Novembers snapshot: When compared to the October SBEI reading, 26 percent of companies increased their headcounts, 51 percent refrained from making labor changes, and 23 percent decreased their employee totals. Since the SBEIs inception in June 2009, the November reading has seen an average hiring decrease of 0.12 percent, an essentially flat reading; and this years reading is the third-largest increase during the November period.
- Industries at a glance: Of the industries reflected in the index, Administrative and Support Services, Non-Profits, Educational, and Healthcare posted job growth. Conversely, Agriculture, Professional Services, and Financial Services posted declines.
- Geographical hiring: In November, the Northeast and Central regions experienced hiring decreases of 0.41 and 0.12 percent, respectively. Meanwhile, the West and Southeast demonstrated hiring increases of 4.16 and 0.66 percent, respectively.
- Whats next? The November report fell right in line with seasonal trends, which indicates the December report will reveal any noticeable reaction in hiring trends as small business owners adjust to consumer sentiment during the holiday season.
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.
(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.
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 companys 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.