Small Business Revenue Falls for Eighth Month, Employment Increases
For the first time since small business employment dipped in April, we saw the beginnings of an uptick in October, according to Intuit’s November Small Business Employment Index, which reports on data from Oct. 24 to Nov. 23.
Overall, 30,000 new jobs were added. Michigan and Kansas saw the biggest declines in employment, while Utah and Maryland saw the largest increases. The hiring rate remains fairly flat, as employees in small business jobs are holding on to them. A more comprehensive breakdown of employment by state can be viewed here.
The Employment Index also found that monthly hours worked increased 0.11 percent (six minutes) and compensation increased 0.5 percent (or $14) in November. Compensation has risen 11 percent on a nominal basis since October 2009. The rise in the price level since then has been just under 7 percent, so the increase in real compensation is about 3.5 percent. The trend in wages for hourly workers — who comprise about 65 percent of small business employees — is up about 5 cents per hour, to $15.65/hour for the month.
The October Small Business Revenue Index indicates that small business sales were down 0.3% for the month, continuing an eight-month downward trend. The real estate and health care industries saw the biggest drop-offs, at 0.9 and 0.7 percent respectively. Professional services followed with a decline of 0.6 percent.
For more information, check out index.intuit.com and download the monthly report in the upper right corner.
Tip: scroll over different points on the graph to see real-time employment and revenue calculations populated at the top of the page!
Tammy Lam is a business writer for Intuit and is passionate about solving small business problems.