CBIZ Small Business Employment Index Shows Pause in Hiring Trend

CLEVELAND--(BUSINESS WIRE)--The June CBIZ Small Business Employment Index, a barometer for hiring trends among companies with 300 or fewer employees, increased by 0.67 percent through the month, after posting an increase of 0.22 percent in May.

“June’s CBIZ Small Business Employment Index reveals another month of little to no growth in the small business job market. We expected to see stronger pickup due to summer seasonal hires; to see a smaller number is probably less than good news.”

Today’s announcement follows ADP’s June jobs survey which showed that the private sector added 157,000 jobs in June, substantially higher than the 36,000 jobs added in May. The June figure more than doubled many economists' expectations of 70,000 new jobs.

Philip Noftsinger, business unit president for CBIZ Payroll Services, says, “June’s CBIZ Small Business Employment Index reveals another month of little to no growth in the small business job market. We expected to see stronger pickup due to summer seasonal hires; to see a smaller number is probably less than good news.”

Additional take-away points from the June data set include:

At a glance: Of the companies that were surveyed, the data shows that 22 percent reported a decrease in employee headcount while 29 percent increased staffing. 49 percent of the companies involved in the survey maintained their number of employees.

Small business sector: The slow pickup of the job market may be in part that the small business sector typically requires longer-term economic growth and likely will not drastically change over a seasonal period of time, as previously expected.

For your consideration: While the small business index revealed less than stellar growth thus far for the summer, other indicators available, such as the payroll processor ADP and the Bureau of Labor Statistics, are likely tracking companies that have a richer set of resources and may be able to hire at a quicker pace.

“At this point, we believe that labor markets in the small business sector will continue to remain soft to weak through the third quarter, possibly improving as we move into the late fourth quarter,” Noftsinger explains.

Currently, CBIZ Payroll Services manages payroll services for approximately 3,000 businesses that employ fewer than 300 people. The sample reflects a broad array of industries and geographies corresponding to the markets across the United States where CBIZ provides services.

For a month by month illustration of the Small Business Employment Index, please click here.

Editor’s note: The United States Department of Labor’s Bureau of Labor Statistics Employment Situation Summary is due to be released on Friday, July 8, 2011 at 8:30 a.m. Mr. Noftsinger is available for media interviews to discuss employment trends and other payroll matters impacting the American business environment.

About CBIZ, Inc. (NYSE:CBZ)

CBIZ, Inc. provides professional business services that help clients better manage their finances and employees. CBIZ provides its clients with financial services including accounting and tax, internal audit, merger and acquisition advisory and valuation services. Employee services include group benefits, property and casualty insurance, retirement planning, payroll, HR consulting and wealth management. CBIZ also provides outsourced technology staffing support services, healthcare consulting and medical practice management. As one of the largest benefits specialists and one of the largest accounting, valuation and medical practice management companies in the United States, the company’s services are provided through more than 150 offices in 36 states.