Small Business Employment Grows in June 2014
The June Intuit Small Business Employment Index continued a four-month growth streak for small business job creation. U.S. small businesses added 20,000 jobs in June, while employees worked fewer hours and made more money during the month. In addition, small business revenue per business increased by a larger margin than it has all year across all industries.
The May Intuit Small Business Revenue Index showed overall revenue gains, across all industries; this is the first time in more than a year that we have seen this level of growth.
Below are highlights from the latest indexes. To download the full report or see past data visit index.intuit.com.
June 2014 Employment Index
- Small businesses added 20,000 jobs, which brings total jobs added since March 2010 to 595,000. This is a 0.10 percent increase in June and represents the beginning of the recovery in small business employment.
- Employees’ average monthly compensation grew 0.03 percent, an increase of $1 from May’s revised figure.
- Average monthly hours worked by hourly employees decreased from May to June by 0.02 percent, which equates to 1 minute.
“This month’s employment data makes for the fourth consecutive month in a row of small business job growth after a flat job market early in 2014. Aside from continued employment growth this month, results for compensation and hours worked were mixed, thus indicating that while the employment picture has improved, it hasn’t been a dramatic rise,” said Susan Woodward, the economist who works with Intuit to create the indexes.
“The revenue figures for small businesses are better than they have been in years – they were up in April, and are up even more in May. The rise in revenues for ‘all’ is about ¾ of one percent, which is a lot, and if it continued for a year, would give us an increase of 10 percent. The question remains, ‘Will small companies hire as a result of seeing this increase in activity?’ We’ll get an idea from next month’s figures.”
Geographically speaking, Michigan continued to show the largest decrease in small business employment, falling 0.4 percent. Idaho and Washington reported the highest increase in employment, jumping 0.4 percent.
This iteration of the employment index is based on anonymized data from approximately 231,000 small businesses, a subset of total Intuit Online Payroll and QuickBooks Online Payroll users. It covers the period from May 24 through June 23.
- On a per-business basis, small business revenues saw an overall increase of 0.8 percent in May.
- Of the industries tracked by the revenue index, professional services led the growth (0.8 percent) followed closely by construction (0.7 percent) and real estate and retail (both 0.5 percent).
- Health care services showed the smallest revenue increase, with a 0.14 percent rise, followed by food services at 0.3 percent.
This latest revenue index is based on anonymized aggregated data from over 150,000 QuickBooks Online small businesses, a subset of total QuickBooks Online users, covering a period from May 1 to May 31.