The CBIZ Small Business Employment Index (SBEI), which tracks hiring trends among thousands of companies across the U.S. with 300 or fewer employees, saw a decline in hiring in the July reading, with a seasonally adjusted decrease of 2.14%. The job losses seen in July are a dramatic reversal from the strong hiring report observed in June.
In July, 17% of companies in the index increased staffing, 57% made no change to their headcounts, and 26% reduced employment totals. Gains were seen in Government, Insurance, Management, and Manufacturing. Declines were seen in Accommodations and Food Services, Arts, Entertainment and Recreation, Education Services, and Retail Trade.
The West (-5.55%) reported the most significant decline in hiring, followed by Central (-2.10%) Southeast (-1.84%) and Northeast (-0.56%) regions. Nearly every industry exhibited some weakness in payroll, which suggests possible corrective measures from over-hiring in search of skilled workers.
Anna Rathbun is Chief Investment Officer, CBIZ Inc.
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