Small Business Job Growth Slow in May
Intuit this morning released the May 2011 update of the Intuit Small Business Employment Index. According to the report, the rate of small business job growth showed no change in May, staying at 0.2 percent month to month, and translating to 45,000 new jobs created.
“The rate of small business job growth is the same as April’s,” says Susan Woodward, the economist who worked with Intuit to create the Index. “But because compensation and hours dropped slightly, we can say the market for small business employment is a bit softer than last month. However, in light of recent tumult in Japan, Greece, and right here at home, it’s a comfort that small business employment continues to improve at all.”
While small business employment continued to climb in May, hours worked and compensation for small business employees dipped slightly, dropping 0.13 percent and 0.14 percent respectively. Small business employees worked an average of 107.9 hours during the month, equating to a 24.9-hour work week, and took home an average of $2,624.
“As small business employers react to economic pressures driven by such factors as rising gas prices and natural disasters, we see the job market soften,” Woodward says. “Employers cut back on employee hours when they have less work for people to do.”
Across the country, small businesses all recorded job growth in May with the exception of the East South Central Census division, where severe flooding along the Mississippi River has ravaged homes and businesses.
To access May's complete Intuit Small Business Employment Index report and previous reports, please visit www.intuitinc.com/payrollindex.