Small business owners are seeing some light in their recovery from COVID-19, according to the CBIZ Small Business Employment Index (“SBEI”), as small business hiring showed a seasonally adjusted increase of 0.21% in September. This latest Index is now a positive indicator for the small business labor market following the declines in August.
The encouraging news in the September numbers is noteworthy since historically the month is not positive for job creation, as explained by Philip Noftsinger, Executive Vice President, CBIZ, Inc.
“The September reading, while reporting relatively unremarkable growth, is a good sign for small business hiring during a month that we typically see a hiring down-turn,” said Noftsinger. “These findings also debunk some of the earlier theories that proposed the enhanced unemployment benefits were the leading factor causing labor shortages.”
The SBEI report also indicated that 22% of companies expanded employment with 52% making no change, while 26% reduced their headcount Hiring gains were seen in educational services, accommodations and food services, non-profit and transportation, while arts and entertainment, retail, and healthcare experienced declines. All regions experienced hiring increases: Central (0.01%), Southeast (0.32%), with the West (2.34%) with the exception of the Northeast (-0.51%).
According to Noftsinger the September uptick is also a positive prelude for the seasonal growth that occurs when the holidays approach. Yet, he has concerns over the ongoing impact of COVID-19 and the Delta variant on how it may impact both employers and job seekers.
“Looking ahead, vaccine mandates might contribute to some hiring declines in regions and industries that are beginning to enforce vaccinations in companies of 100 plus employees,” added Noftsinger.
While the SBEI tracks payroll and hiring trends for over 3,700 companies having 300 or fewer employees, the ADP and Moody’s report tracks small, medium and large-sized companies with a breakout of small businesses that have 49 or fewer employees.
That ADP and Moody’s report showed that September employment had an overall increase of 568,000 private-sector jobs, affirming that qualified candidates are being found resulting in a significant increase in business hiring over the August report. Noteworthy is the 63,000 new jobs resulting from small businesses now hiring which aligns with the CBIZ SBEI that showed a .21% increase in September.
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