Following five months of positive readings for the CBIZ Small Business Employment Index (SBEI), data from over 4000 companies employing less than 300 people shows a decrease of -0.78 percent for August. Because hiring trends are typically positive in August, this may be a sign of the global economy’s negative effect on small business, according to the recently released report.
“Small business owners are feeling the ripple effect of global economies in transition. Though August is a historically positive month, this negative reading – which can be seasonally adjusted to reflect a -1.22 percent decline – is fairly significant as we head into fall,” says Philip Noftsinger, business unit president for CBIZ Payroll Services. “As negative market news continues to make headlines, it seems that small business owners are proceeding with caution and taking pause in terms of hiring,”
In the wake of mixed economic news, many small business owners are hesitant to hire. In August, 28 percent of small businesses reduced headcounts, while 50 percent made no change to their number of employees.
“After ADP revised its jobs number to 177,000 positions created in July, business hiring may be slowing along with the signs that the global economy may be pulling back as well.”
The industries that experienced the most decline for August were healthcare, professional services, administrative and support services, art, education and recreation; while information services and educational services experienced growth in hiring.
To view an infographic of the employment index data, visit the CBIZ Blog.
