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 1.73 percent in June, following an increase in hiring of 1.78 percent in May.
Forty-eight percent of companies in the SBEI did not make a change to their staff totals, while 31 percent of companies increased employee counts and 21 percent decreased headcounts. The June period has averaged a hiring increase of 0.92 percent since the index's inception in 2009. Additionally, Agriculture, Technical Services, Arts and Entertainment, and Construction showed notable labor market growth during June, as only Education showed significant decline, due to the seasonal nature of the profession. Regionally, three of four areas of the country saw employment increases, with the Northeast leading the way, posting the highest rate at 3.2 percent growth. The West region posted the only decline of 0.56 percent.
While June’s reading likely signifies a growing trend in small business hiring, it’s possible we could see hiring slow over the next few months with a tightening labor market. It has also yet to be seen how trade-war talks will affect the main street economy. We may see the effect trickle down to small business owners and their hiring decisions over time.
The SBEI illustration is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.