CBIZ Small Business Employment Index Slips In July
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 seasonally adjusted decrease in hiring of 0.43 percent in July, following a increase in hiring of 1.16% percent in June.
Fifty percent of companies in the SBEI did not make a change to their staff totals, while 25 percent of companies increased employee counts and 25 percent decreased headcounts. The July period has averaged a decrease in hiring within the small business sector. The Information Services, Insurance, Construction, Wholesale and Manufacturing industries posted gains in July. Decreases were seen in Non-Profits, Transportation, Education Services, Accommodation and Food Services, and Professional Services. Regionally, all four regions reported decreases.
July is typically a month where employers shed staff after adjusting from expected demand during the summer months to actually needed staffing levels. However, other factors may be at play in this report. Employment numbers are at historical highs, which has hampered the ability for companies to hire workers. In addition, an economic slowdown may be afoot, as made clear by the Federal Reserve’s recent decision to raise interest rates.