Small Business Employment Shows Large Gains in May 2014; Overall Revenue Up
The May 2014 Intuit Small Business Employment Index showed the largest employment increase in more than a year. This month’s increase is triple the average of 12,000 new jobs per month that have been added since the small business recovery began in April 2010.
As well, the April 2014 Intuit Small Business Revenue Index showed that small businesses made more money in April, with overall revenue per business across all industries increasing by nearly a quarter of one percent.
Below are highlights from the latest indexes. To download the full report or see past data visit index.intuit.com.
May 2014 Employment Index
- Small businesses added 35,000 jobs, which brings the total number of jobs added since March 2010, the beginning of the recovery in small business employment, to 575,000.
- Employees’ average monthly compensation grew 0.6 percent, an increase of $17 from April’s revised figure.
- Average monthly hours worked by hourly employees increased from April to May by 0.8 percent, which equates to 48 minutes.
“This month’s employment increase is the largest we’ve seen in more than a year. In addition to the impressive increase of jobs this month, the hiring rate is also at the highest level we’ve seen since early 2009,” said Susan Woodward, the economist who works with Intuit to create the indexes.
“This increase in small business activity could be credited to the spike in homebuilding. Housing starts grew from 947,000 units in March to 1,072,000 units in April, an increase of about 13 percent.”
Geographically speaking, small businesses across the nation continued to show growth in May. Among the 39 states that Intuit tracks, only Michigan saw a decline in small business employment. Nevada reported the highest increase in employment at 0.5 percent, followed by Hawaii and Oregon at 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 April 24 through May 23.
April 2014 Revenue Index
Highlights from the April 2014 revenue report include:
- On a per-business basis, small business revenues saw an overall increase of 0.2 percent in April.
- Of the industries tracked by the revenue index professional services led the growth (0.3 percent).
- The real estate industry showed the largest revenue decline at 0.3 percent, followed by the retail industry, which showed a decline of 0.19 percent, and the health care sector, which dropped by 0.01 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 the period from April 1 to April 30.