Small Biz Employees Worked More, Took Home More Money in April
Small businesses coast-to-coast continued to add jobs in April, according to the Intuit Small Business Employment Index. The April report found that small business employment grew 0.3 percent, translating to 60,000 new jobs. Not only did overall employment grow, but small business employees worked more hours and earned more money. The Index is based on figures from the country’s smallest businesses that use Intuit Online Payroll.
“Small business employment is showing continued strength,” says Susan Woodward, the economist who worked with Intuit to create the Index. “Employment is up, hours worked are up, and total compensation per employee is up. Moreover, employment is up across the country. While we have a long way to go to full employment, we have seen continued improvement now for a year-and-a-half.”
Small business employment has been on an upward trend since October 2009, creating 845,000 jobs.
Small business hourly employees worked an average of 109.8 hours in April, making for a 25.3-hour work week, the strongest monthly increase in hours worked so far in 2011. Average monthly pay for all small business employees was $2,653 per month in April, up 0.5 percent from March.
“Compensation per employee rose in April, continuing a slight, upward trend that began about six months ago,” says Woodward. “This upward trend is partly due to hourly employees working more hours while their hourly wages remain flat. So despite this slight rise in compensation, the small business labor market is still soft and employers have room to hire without pushing wages up.”
As for the small business employment landscape by region, the Intuit Index breaks down job growth by U.S. Census Division.
“For the fourth month in a row, all nine U.S. divisions showed employment growth,” says Nora Denzel, senior vice president and general manager of Intuit’s Employee Management Solutions division. “We also saw job growth in every state in which we have more than 1,000 Intuit Online Payroll customers. We’ve seen job growth from coast to coast throughout 2011.”
For more information about the Intuit Small Business Employment Index, please visit www.intuitinc.com/payrollindex.