Small Biz Leads Job Recovery in U.S.
Small businesses in the U.S. added 70,000 jobs in January, continuing their upward trend in employment growth that began in October 2009, according to the Intuit Small Business Employment Index. In fact, since October 2009, small businesses have created more than one million jobs.
Evaluating economic recovery in the U.S., Dr. Susan Woodward, the economist we worked with to create the Index, declared, “A substantial fraction of the new jobs in the recovery have been created by small businesses. This month’s numbers are stronger than last month and they look better in every category. These job gains contrast sharply with mild job gains for the overall economy. As small businesses generally recover sooner than big businesses, this continued growth is quite encouraging for economic recovery.”
In addition to growing employment 0.3 percent in January, small businesses increased hours works amongst their hourly employees 0.6 percent to a 24.9-hour work week and average monthly pay 0.3 percent to $2,619 per month.
From a regional standpoint, every Census division has continued to grow small business employment except for the West North Central division, which experienced job losses in January for the fourth month in a row. Vice President of Intuit’s Employee Management Solutions division Cameron Schmidt noted, “Most states saw increases in employment, with New Jersey achieving the strongest growth over the last four months. This is an about face from last spring and summer when New Jersey was shedding the most jobs.”
To read the full Index report, visit www.intuitinc.com/payrollindex. If you’re interested in expert advice on hiring your first employee, visit www.intuitinc.com/hire to receive a free book that helps guide you through the process.