Cleveland (PRESS RELEASE – May 9, 2011) – The April CBIZ Small Business Employment Index (SBEI), a barometer for hiring trends among companies with 300 or fewer employees, increased by 1.35 percent through the month, after posting an increase of .69 percent in March. To date, the index results display the highest hiring gain of 2011.
Philip Noftsinger, business unit president for CBIZ Payroll Services, says, “Despite some disappointing GDP news from the first quarter and a recent increase in weekly jobless claims, the index continues to show positive job growth for the third consecutive month. This month’s results show a stronger growth factor than the results in the prior two periods, indicating there may be less volatility in the small business marketplace.”
The SBEI’s data offers a contrary gauge of the small business marketplace from that of ADP, the payroll processor, which released its most recent report on Wednesday, May 4, 2011.
Additional take-away points from the April data set include:
- At a glance: Of the companies that were surveyed, the data shows that 26.9 percent increased employee headcount while 53.2 percent maintained the number of employees. 19.9 percent of the companies surveyed did report a decrease in their employment patterns.
- Small business owners more likely to hire: From February to April, the study shows that fewer employers are reducing their workforce and, instead, hiring or maintaining the current staff. Index results from March to April show a 1.3 percent decrease in employee reduction.
- What to watch: As gas prices continue to rise, the resulting impact may inhibit future growth. This is an issue that small business owners will want to follow considering it may hinder future business projections and current costs of operation.
“It will be important to see if recent world events, as well as sluggish economic indicators from the first quarter, reverse the employment trend among smaller employers,” Noftsinger says. “It remains our opinion that smaller employers are dialed in to short-term demand and engaging larger workforces based primarily upon that factor.”
Currently, CBIZ Payroll Services manages payroll services for more than 3,000 businesses that employ fewer than 300 people. The sample reflects a broad array of industries and geographies corresponding to the markets across the United States where CBIZ provides services.
Noftsinger is available for media interviews to discuss small to mid-market employment trends and other payroll matters impacting the American small business environment.
About CBIZ, Inc. (NYSE:CBZ)
CBIZ, Inc. provides professional business services that help clients better manage their finances and employees. CBIZ provides its clients with financial services including accounting and tax, internal audit, merger and acquisition advisory and valuation services. Employee services include group benefits, property and casualty insurance, retirement planning, payroll, HR consulting and wealth management. CBIZ also provides outsourced technology staffing support services, healthcare consulting and medical practice management. As one of the largest benefits specialists and one of the largest accounting, valuation and medical practice management companies in the United States, the company’s services are provided through more than 150 offices in 36 states.