Small Business Employment Continues Its Slow Recovery
The January 2014 Intuit Small Business Employment Index showed an increase in employment, although the pace of growth slowed slightly.
Conversely, with the exception of the construction sector and the “other services” sector, all industries tracked by the December Intuit Small Business Revenue Index showed declines in revenue. See more on this in this month’s report.
Here are some additional highlights from last month’s data:
January 2014 Employment Index
- Small business employment increased 0.04 percent, the equivalent of 10,000 jobs.
- Average monthly compensation declined 0.02 percent, or approximately $0.50, from December.
- Average monthly hours worked by hourly employees declined 0.2 percent, or approximately 12 minutes, from December.
“Businesses with 1 to 19 employees now employ 20.3 million people,” says Susan Woodward, the economist who works with Intuit to create the indexes. “That number is still below the 21.2 million they employed in March 2007, but it is a welcome change from the employment stall from May through October.”
Small business employment increased in 24 of the 38 states tracked by Intuit’s Small Business Employment Index. Ten states showed employment declines, while four remained flat. Kentucky saw the largest employment increase in January, at 0.3 percent. The largest decline was in Pennsylvania, at 0.13 percent.
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 Dec. 24 to Jan. 23.
December 2013 Revenue Index
- On a per-business basis, small-business revenues saw an overall decline of 0.5 percent in December.
- Of the industries tracked by the revenue index, the construction sector and “other services” sector were the only ones to see revenues increase, at 0.3 percent and 0.13 percent, respectively.
- The real estate services industry showed the largest decline, at 1 percent. The retail industry followed suit, dropping by 0.8 percent.
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 Dec. 1 to Dec. 31.
Tammy Lam is a business writer for Intuit and is passionate about solving small business problems.