The CBIZ Small Business Employment Index (SBEI) recently recorded a -3.71 percent change for hiring in January, the most dramatic decrease since January 2010. According to the SBEI, it isn’t unusual for businesses to experience a decline after the holidays, but “this particular reading seems to show that small business owners are taking stock of the global economy once more.”
Over a third of companies in the index cut staff, although 47 percent of businesses made no changes in their employee headcount. Despite the record decline, a recent jobs report from payroll processor ADP shows that many businesses surpassed economists’ predictions of new job additions in January by 10,000. Still, it appears these jobs are heavily concentrated by industry. The SBEI found the only industry to experience growth was “Business Outsourcing,” with all others declining.
The SBEI anticipates that labor markets will stay negative in response to the unpredictability of the global markets. In particular, currency adjustments will force companies both in the United States and overseas to keep a close eye on hiring practices.
