Cleveland (PRESS RELEASE – August 11, 2011) – The July CBIZ Small Business Employment Index, a barometer for hiring trends among companies with 300 or fewer employees, decreased by .90 percent through the month, after posting an increase of 0.67 percent in June.
“I believe we will continue to see fluctuating employment numbers until the small business owner can gain more clarity as to what the next six to 12 months will look like from an economic, regulatory and tax perspective”
The announcement follows ADP’s July jobs survey which showed that the private sector added 114,000 jobs in July, much lower than the revised 145,000 jobs added in June.
Philip Noftsinger, business unit president for CBIZ Payroll Services, says, “It comes as no surprise that employment levels in the small business sector show a reduction for the month of July. There is a lot of negativity in the marketplace right now, from the debate over the nation’s debt limit to the recent GDP numbers for the previous two quarters. Because of this negative information, there are many small business leaders that are resisting the need to replace regular attrition as they wait to see if a recession is imminent.”
Additional take-away points from the July data set include:
At a glance: Of the companies that were surveyed, the data shows that 25 percent reported a decrease in employee headcount while 25 percent increased staffing. 50 percent of the companies involved in the survey maintained their number of employees.
Small business sector: The reduction in employment is expected due to ongoing negativity and uncertainty in the marketplace. Historically, the small business sector tends to thrive during periods of long-term economic growth. Without clear signs ahead, a major improvement change over the short-term is unlikely.
What to watch: Clarity presently lacks due to the new debt deal, doubts as to whether the country will retain its AAA credit rating, whispers of a double dip recession and future tax re-structuring should all continue to affect small business owners.
“I believe we will continue to see fluctuating employment numbers until the small business owner can gain more clarity as to what the next six to 12 months will look like from an economic, regulatory and tax perspective,” Noftsinger continued.
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.
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.