Intuit Small Business Indexes: Employment Up, Revenue Down
This morning we released the latest Intuit Small Business Indexes, which reveal the strongest employment growth we've seen since March 2012, though revenue overall is down.
This edition of the indexes reports on June employment, compensation, and hours worked, along with the May revenue figures of U.S. small businesses.
Here are some highlights:
- 70,000 new jobs were created in June.
- The highest employment growth was seen in Arizona, Colorado, and Maryland.
- Average monthly compensation in June increased by 0.5 percent, or $14, compared with a 0.13 percent, or $4, decrease in May.
- Average monthly hours worked in June increased by 0.3 percent, or 18 minutes, compared with a decrease of 0.6 percent, or 42 minutes, in May.
"The rise in compensation and the hourly wage suggest that the labor market for the smallest firms is a bit firmer than it has been for several years," says Susan Woodward, the economist who worked with Intuit to create the indexes. "The low hiring rate, however, indicates that small-business employees are not yet feeling too secure and are sticking with the jobs they have. When a full recovery is under way, the small-business hiring rate will likely rise, as big firms hire people away from small firms, but this is not yet happening."
The employment index is based on data from approximately 80,000 small businesses using Intuit Online Payroll.
- Small businesses overall saw revenue decline by 0.12 percent in May.
- All industries saw declines except the construction and real estate fields, which posted 0.5 and 0.1 percent gains, respectively.
"While the revenue figures are disappointing overall, the rise in the construction and real estate industries is consistent with other signs of recovery in the housing sector, including rising sales of new homes and a rise in construction," Woodward says. "Improvement in this sector has been a long time coming and is essential for full recovery, which still eludes us."
The revenue index is based on data from approximately 150,000 small businesses using QuickBooks Online.
Want more information about the indexes and methodology? Check out index.intuit.com to see detailed breakdowns of growth (by industry and geography) and to download the full report.
Tammy Lam is a business writer for Intuit and is passionate about solving small business problems.