The CBIZ Small Business Employment Index (SBEI), a barometer for small business hiring trends that surveys approximately 4,000 companies employing 300 or fewer people, reported a 1.12 percent month-over-month increase in hiring this May, a significant recovery from the decrease in hiring in April.
This month, 28 percent of companies in the SBEI increased staff, 50 percent held their headcounts steady and 22 percent cut employee totals. Most of the industries represented in the SBEI realized positive growth, including Rental and Leasing Services, Agriculture, Arts and Entertainment, Utilities, Real Estate, Transportation, Construction and Retail Trade. Manufacturing was the only industry represented that saw a decrease in hiring. Further, while the Northeast, Southeast and Central regions all realized growth, the West region saw a moderate decline in hiring of 0.54 percent.
This month’s pace of small business hiring growth matched historical averages; however, as small business owners await fiscal policy change, lingering uncertainty ahead is impacting job growth. As the Federal Reserve looks to raise interest rates, it will be interesting to see whether small business owners refrain from hiring more aggressively in the months ahead.
The graphic below highlights trends and results from the SBEI.
The SBEI illustration is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.