The CBIZ Small Business Employment Index (SBEI), which tracks hiring trends among thousands of companies with 300 or fewer employees across the U.S., indicated a seasonally adjusted increase of 0.66% in August following losses observed in June and July. This summer’s data, including the JOLTS report and ADP and BLS results that missed expectations, indicates a weakening labor market and a shift in leverage from employees to employers.
In August, Educational Services; Technology and Life Sciences; and Transportation led the hiring increases. The largest declines were seen in Accommodation and Food Services; Agriculture, Forestry, Fishing and Hunting; and Insurance. Overall, 20% of companies in the index increased staffing, 61% made no change to their headcounts, and 19% reduced employment totals.
On a regional level, the Southeast (1.07%), Central (1.04%), and Northeast (0.16%) regions experienced job gains. The West was the only region to see a decrease in jobs (-0.79%). With leading indicators suggesting potential economic weakness, it remains to be seen if these job gains will hold steady as we approach the final quarter of the year.
Anna Rathbun is Chief Investment Officer, CBIZ Inc.
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