Small Business Employment Flat in February 2014
The latest Intuit Small Business Employment Index remained flat in February 2014, showing no new jobs added. Similarly, the Intuit Small Business Revenue Index showed a 0.09 percent decline in overall small business revenue in January 2014. Download the full report and see past data at index.intuit.com.
Here are some key highlights from the latest report:
February 2014 Employment Index:
- Small businesses have added more than 570,00 jobs since March 2010.
- Small business employees average monthly compensation grew 0.5 percent in February, an increase of $15 from January’s revised figure.
- Average monthly hours worked by hourly employees increased 0.5 percent in February, an increase of approximately 30 minutes from January’s revised figure.
“By region, the Midwest and the East Coast saw the most employment declines, possibly due to the extreme winter,” said Susan Woodward, the economist who works with Intuit to create the indexes. “While the changes in employment are mixed across states overall, total compensation and hours worked were up in all states except Idaho, a major skiing state which is suffering from a snowless winter, and New Jersey, whose changes were small.”
This iteration of the employment index is based on anonymized data from approximately 200,000 small businesses, a subset of total Intuit Online Payroll and QuickBooks Online Payroll users. It covers the period from January 24 to February 23.
January 2014 Revenue Index:
- On a per-business basis, small-business revenues saw an overall decline of 0.09 percent in January.
- Of the industries tracked by the revenue index, the construction sector , health care sector and “other services” sector were the only sectors to see revenues increase, at 0.3 percent, 0.01 percent, and 0.5 percent, respectively.
- The real estate services industry showed the largest decline at 0.5 percent, followed by the accommodation and food services sector, which dropped 0.2 percent.
Half of the industries registered gains, while the other half reported declines. The biggest gains occurred in the construction and “other industries” sectors, the latter of which includes non-professional services such as auto repair and gardening services.
“The drop in real estate services revenue reflects the decline in home sales, while the drop in revenues for the accommodation and food services sector resulted from the difficult winter,” Woodward said.
This latest revenue index is based on anonymized data from approximately 150,000 small businesses, a subset of total QuickBooks Online users, covering the period from Jan. 1 to Jan. 31.
Tammy Lam is a business writer for Intuit and is passionate about solving small business problems.