CBIZ Small Business Employment Index reported a slight increase in employment numbers in April
CLEVELAND, May 7, 2024–(BUSINESS WIRE)–The CBIZ Small Business Employment Index (“SBEI”) rose a seasonally adjusted 0.29% in April, marking the third consecutive month of growth in small business employment. I reported. CBIZ SBEI tracks salary and hiring trends for more than 3,000 of his companies with 300 or fewer employees, providing broad insight into small business trends.
“The U.S. economy continues to make steady progress, demonstrating resilience and defying expectations of a slowdown,” said Anna Rathbun, CFA, chief investment officer at CBIZ Investment Advisory Services, LLC. “Meanwhile, the skilled labor shortage that became evident during the pandemic persists, and employers continue to prioritize talent in this tight labor market.”
The Bureau of Labor Statistics’ employment report showed that despite job growth, it was lower than expected. April figures showed an overall increase of 175,000 private sector jobs. The national unemployment rate rose slightly to 3.9%. This report includes all non-farm private sector employers across all sizes of businesses. Meanwhile, the ADP employment report showed an increase in employment in small, medium, and large enterprises. April figures showed private sector employment increased by 192,000 jobs for the month overall. On a seasonally adjusted month-on-month basis, small and medium-sized enterprises accounted for an increase of 38,000 people. The ADP report counts small businesses as those with 49 or fewer employees, while the CBIZ SBEI uses data for companies with 300 or fewer employees.
Regionally, the Northeast (0.63%), Central (0.53%), and Southeast (0.13%) all saw employment increases. The West (-1.21%) was the only region with a decline.
At the industry level, employment growth was seen in administrative and support services. Agriculture, fishing, hunting. Arts, Entertainment and Recreation. Employment declines were seen in education services, financial services, and utilities.
Mr Rathbun said: “Despite a slight rise in the unemployment rate and a weaker-than-expected rise in non-farm payrolls, this month’s 175,000 job gain is more in line with consistent indicators such as the ADP numbers. “This suggests that the labor market remains strong,” he added.
To view an infographic with employment index data, please visit the CBIZ website.
Here are some other takeaways from April’s SBEI:
April snapshot: 19% of companies included in the index increased headcount, 61% kept the number of employees unchanged, and 20% reduced total employment.
Industry overview: Management and Support Services. Agriculture, fishing, hunting. Employment increased in the arts, entertainment and recreation sector. Declines were seen in education services, financial services, and utilities.
Geographic employment: There was an increase in the Northeast (0.63%), Central (0.53%), and Southeast (0.13%) regions, while there was a decrease in the West (-1.21%).
What’s next? From a historical perspective, April typically sees weak employment gains, so this month’s results are a positive change. Small business owners continue to navigate this tight labor market by aggressively seeking skilled workers.
Editor’s note:
(1) SBEI illustrations are licensed under the Creative Commons Attribution-NoDerivs 3.0 Unported License. Based on work at https://www.cbiz.com.
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About CBIZ
CBIZ is a leading provider of financial, insurance and advisory services to businesses throughout the United States. Financial services include accounting, tax, government health consulting, transaction advisory, risk advisory, and valuation services. Insurance services include employee benefits consulting, retirement planning consulting, property and casualty insurance, payroll, and human capital consulting. With more than 120 offices in 32 states, CBIZ is one of the largest accounting and insurance brokerage providers in the United States. For more information, please visit https://www.cbiz.com.
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