The CBIZ Small Business Employment Index (SBEI), which tracks hiring trends among thousands of companies that employ 300 or fewer employees across the U.S., reported a month-over-month increase in hiring of 1.78 percent in May, following a decrease in hiring of 0.21 percent in April.
Fifty percent of companies in the SBEI did not make a change to their staff totals, while 29 percent of companies incresed employee counts and 21 percent decreased headcounts. The May period has averaged a hiring increase of 1.05 percent since the index's inception in 2009. Additionally, most industries reflected in the SBEI saw positive growth, with the exceptions being Professional and Financial services as well as Insurance. Regionally, all four areas of the country saw employment increases, with the Northeast leading the way, posting the highest rate at 2.52 percent growth.
While May's reading is positive for the small business labor market, it follows several months of disappointing reports, as tax reform was expected to have a larger initial impact on the labor market. May's report finally demonstrates the impact of tax reform being realized on small business owners' hiring decisions, as consumers use disposable income on Main Street and cause a surge in demand for labor.
The SBEI illustration is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.