- The CBIZ Small Business Employment Index reported a nominal decline
The CBIZ Small Businesses Employment Index (“SBEI”) reported a seasonally adjusted decrease of 0.09% in February, an improved reading from the more notable declines seen in the previous month. The CBIZ SBEI tracks payroll and hiring trends for over 3,600 companies that have 300 or fewer employees, providing broad insight into small business trends.
“Although February was an unremarkable month for hiring, we should be looking ahead to what will be major influencers for small business and job growth”
“The month of February has historically seen flat hiring trends, so this is an overall positive sign as ‘The Great Reshuffle’ among employers and job candidates abates,” said Philip Noftsinger, Vice President Finance and Corporate Controller at CBIZ, Inc. “Small businesses face new challenges on the heels of the labor market concerns, and rising inflation will be a headwind for the economy further influencing hiring trends.”
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The ADP and Moody’s employment report indicated a hiring growth among small, medium-sized and large companies. Its February reading showed an overall increase of 475,000 private-sector jobs for the month. However, its breakout data specific to small businesses reported a decline of 96,000 jobs on a seasonally adjusted, month-over-month basis. The ADP and Moody’s report counts small businesses as companies with 49 or fewer employees, while the CBIZ SBEI uses data from companies with 300 employees or fewer.
The CBIZ SBEI reported depressed hiring in the Northeast (-0.76%) and Central (-0.38%) regions. The West (0.97%) and Southeast (0.72%) both experienced small increases. All regions show more optimistic hiring trends from January.
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On an industry level, the most notable hiring increases were seen in Administration and Support Services, Insurance, and Technology and Life Sciences. Staffing reductions were seen in Information, Real Estate, and Professional Services.
“Although February was an unremarkable month for hiring, we should be looking ahead to what will be major influencers for small business and job growth,” added Noftsinger. “Job creation continues to be a leading theme for policy makers as we enter an election year.”