CBIZ Small Business Employment Index Continues to Sour
December 4, 2015 | Business WireEstimated reading time: 2 minutes
The CBIZ Small Business Employment Index (SBEI), a barometer for hiring trends that surveys labor data from over 4,000 companies employing 300 or fewer people, registered a -1.13 percent change from October to November.
“Our November reading of the SBEI is reflective of this month’s NFIB report, which also shows small business owners remaining on the sidelines in terms of hiring,” says Philip Noftsinger, president of CBIZ Employee Services Organization. “Considering economic data for the past few months has been deteriorating at a measurable pace, we shouldn’t be too surprised to see a decrease for the month of November.”
Though Wednesday’s jobs report from payroll processor ADP revealed businesses added 217,000 jobs in November, the broader economic picture bodes caution. New home sales have retracted and investments in capital expenditures have slowed over the past 10 months. Also, while consumer sentiment rose in October, it was the second lowest reading of the year.
Additional takeaways from the November SBEI include:
- November snapshot: This month, 28 percent of companies included in the SBEI reduced headcounts, 21 percent increased payroll commitments, and 51 percent of the small businesses in the index made no change to their employee totals.
- What industries should we be watching? Few industries grew in this month’s SBEI reading. Administrative and Support Services led the way, followed by other Non-Profits and Professional and Financial Services. Technology and Life Sciences, Entertainment and Recreation, and Construction sectors all saw large declines. Smaller declines in staffing were noted in Transportation, Wholesale Distribution, and Manufacturing. Retail also recorded a slight decline.
- What’s next? The holiday season did not result in a positive surge as we have seen in years past. One explanation could be Americans turning to online outlets as the preferred mode of shopping this year. As a result, small businesses are not seeing the need to hire in-store help. Also, after a weaker than expected fourth quarter, this reading does not set the stage for a positive start to 2016.
CBIZ Payroll Services manages payroll services for more than 4,000 businesses. Its index reflects a broad array of industries and geographies corresponding to the markets across the United States, where CBIZ provides human capital services. The data represented by the SBEI is derived from a segment of employers not completely accounted for by the ADP and Federal BLS employment reports.
About CBIZ, Inc.
Named one of America’s 2015 Best Employers and ranked as the #1 employer in the consulting and accounting industry by Forbes magazine, CBIZ, Inc. provides professional business services that help clients better manage their finances and employees. CBIZ provides its clients with financial services including accounting, tax, financial advisory, government health care consulting, risk advisory, real estate consulting, and valuation services. Employee services include employee benefits consulting, property and casualty insurance, retirement plan consulting, payroll, life insurance, HR consulting, and executive recruitment. As one of the nation’s largest brokers of employee benefits and property and casualty insurance, and one of the largest accounting and valuation companies in the United States, the Company’s services are provided through more than 100 Company offices in 33 states.
Suggested Items
Alternative Manufacturing Inc. Awarded QML Requalification to IPC J-STD-001 and IPC-A-610
04/24/2024 | IPCIPC's Validation Services Program has awarded an IPC J-STD-001 and IPC-A-610 Qualified Manufacturers Listing (QML) requalification to Alternative Manufacturing Inc (AMI).
Absolute EMS Champions Collaboration Between Humans and Robots in Modern Manufacturing
04/19/2024 | Absolute EMS, Inc.Absolute EMS, Inc., an award-winning EMS provider of turnkey contract manufacturing services, offers a perfect factory environment that seamlessly blends robotic automation with human expertise.
Gartner Forecasts Worldwide IT Spending to Grow 8% in 2024
04/17/2024 | Gartner, Inc.Worldwide IT spending is expected to total $5.06 trillion in 2024, an increase of 8% from 2023, according to the latest forecast by Gartner, Inc. This is an increase from the previous quarter’s forecast of 6.8% growth and puts worldwide IT spending on track to surpass $8 trillion well before the end of the decade.
Catching Up With Chasom Electronics
04/16/2024 | Dan Beaulieu, D.B. Management GroupI recently met with Chasom Electronics’ founding director Anil Kumar. Chasom offers a unique menu of services for companies looking to extend their technology capabilities on a short- or long-term basis. Read on to learn about this very unique service company.
Europe’s IT, Business Services Sector on the Rebound in Q1: ISG Index
04/15/2024 | BUSINESS WIREEurope’s demand for IT and business services in the first quarter rose for the first time in a year, powered by growth from the banking, financial services and insurance (BFSI) sector, according to the latest state-of-the-industry report from Information Services Group (ISG), a leading global technology research and advisory firm.