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 an adjusted decrease of 2.60% as the third quarter ended. September’s hiring data indicates a weakening labor market, marked by widespread job losses across all regions.
In September, 79% of all monitored industries saw job losses. The largest declines were seen in Arts, Entertainment and Recreation; Manufacturing; and Technology and Life Sciences. Employment gains were seen in Insurance, Not-for-Profit, and Transportation. Overall, 15% of companies in the index increased staffing, 58% made no change to their headcounts and 27% reduced employment totals.
On a regional level, the Northeast (-2.87%) and Central (-2.77%) regions saw the largest decrease in hiring, followed by the Southeast (-2.50%) and Western (-1.14%) regions. One month’s data won’t tell the full story. The labor market’s true trajectory lies in the longer-term trends, and recent reports hint at a growing uncertainty that can’t be ignored. With confidence faltering, the coming months will be crucial in shaping the broader economic picture.
Anna Rathbun is Chief Investment Officer, CBIZ Inc.
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