Our June Small Business Employment Index
(SBEI) was just released and the findings show solid growth in employment for small businesses. The June SBEI increased by 1.38 percent, following an increase of 1.34 percent in small business hiring in May
. The positive number represents three consecutive months of positive employment growth in the small business sector.
The SBEI’s gain reflects a continued strengthening in growth in small business employment and contrasts recent weakening reports from the private sector. ADP’s June jobs survey
reported the private sector added 176,000 jobs last month, which beat analysts’ estimates. However, May’s revised tally of 136,000 added jobs was well below analysts’ estimates.
|Click graph for a larger image of SBEI results|
A breakdown of key metrics from the small business companies surveyed in June include:
- 29 percent reported an increase in employee headcount
- 20 percent decreased staffing
- 51 percent maintained their number of employees
The domestic economy has been stable through the first two quarters of 2012, so it’s likely that many of these smaller employers are benefiting from a steady domestic situation as well as the summer travel season.
In addition, we will continue to watch for any impacts related to the looming tax increases scheduled to change on January 1, 2013. With the Supreme Court ruling that the Patient Protection and Affordable Care Act
(ACA) remains in-force, small business owners have a clearer picture of what to expect. The more predictable the business environment, the more likely business owners will invest. Companies like us are uniquely positioned to help the small business owner navigate all corners of health care reform— from tax, to benefits, to payroll, to dealing with human capital.
Additional information on these findings can be found in June’s Small Business Employment Index
press release. The SBEI illustration is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.