Two More Years of Growth Needed to Reach Pre-Recession Levels
According to the latest installment of the monthly Intuit Small Business Employment and Revenue Indexes, small business revenues and employment are slowly growing at a rate that could get us back to pre-recession levels in two years.
The latest installment of the Intuit Small Business Revenue Index shows that revenues took an upturn in certain industries and were flat for others, with no decline for any industry sectors. In April, retail, professional services, and other services saw upticks in revenue, with small improvements in the construction and real estate industries as well. Small businesses in the accommodation and food service industry, along with the health care and social services sector, experienced revenue graphs that were flat. The index is based on data from QuickBooks Online and covers the period from January 2005 through April 2012.
The Intuit Small Business Employment Index shows that employment grew by 0.2 percent in May, which equates to approximately 40,000 jobs created. Small business hourly employees worked an average of 106.4 hours during the month, a decrease of 0.6 percent, or around 42 minutes, from the revised figure of 107.1 hours in April, equating to a 24.6-hour workweek. Average monthly pay for all small business employees decreased to $2,688 in May, a decrease of 0.13 percent, or $4, from the revised April figure of $2,692 per month. This index is based on data from Intuit Online Payroll and covers the period from January 2007 through May 23, 2012.
The Employment Index showed overall employment growth in May for all census divisions, with the Mountain and East South Central Regions seeing the biggest gains. A state-by-state breakdown showed increases in all states that the index covers except for Oregon and Pennsylvania. The top three states for growth were Arizona, Colorado, and Virginia.
Want more information about the indexes and methodology? Check out index.intuit.com to download a white paper, more charts, and the full report.