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 decrease of 1.00% in July, making it the second straight month of losses. The report from the Bureau of Labor Statistics indicated hiring growth that missed expectations, with the national unemployment rate rising to 4.3%.

In July, 68% of all monitored industries saw depressed or stagnant hiring. The largest declines were seen in Educational Services, Not-for-Profit and Transportation. Management, Mining and Utilities experienced hiring gains. Overall, 20% of companies in the index increased staffing, 60% made no change to their headcounts and 20% reduced employment totals.

On a regional level, the West (-5.54%) experienced the largest decrease in hiring, followed by the Central (-1.44%) and Southeast (-0.11%) regions. The Northeast (+1.15%) was the only region to report a hiring increase. Typically, a robust season, July's data showed downward revisions in job figures, alongside rising jobless claims, pointing toward weakness in what should be a robust season for the small business labor market.

Anna Rathbun is Chief Investment Officer, CBIZ Inc.

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