CBIZ Small Business Employment Index Shows Strong Hiring Trends in June
JUL 7, 2021 - 6:28 am
The CBIZ Small Business Employment Index reported a seasonally adjusted increase of 0.34% for June. This increase is a positive sign of growth for the small business sector and its overarching trajectory for economic recovery. In addition, 30% of companies in the index expanded employment, 53% made no change to their headcounts and 17% cut back on staffing.
“The June 2021 reading supports historical trends, as businesses increase seasonal hiring heading into the summer months,” Philip Noftsinger, executive vice president of CBIZ, said. “The data is also supportive of the broader growth trajectory we have seen as the small business landscape recovers from the pandemic.”
The ADP and Moody’s employment report showed tangible hiring growth in June as well. According to the data, private sector jobs increased by 692,000 on a month-over-month, seasonally adjusted basis, and small business jobs increased by 215,000. The ADP and Moody’s report counts small businesses as companies with 49 or fewer employees, while the CBIZ Small Business Employment Index uses data from companies with 300 employees or fewer.
The CBIZ Small Business Employment Index revealed noteworthy data in its U.S. regional breakdown for June. Hiring spiked in the Northeast (2.77%), demonstrating the impact of broader economic reopening in the region. The Central region (0.09%) also experienced hiring increase, while declines occurred in the Southeast (-0.17%) and West (-0.79%).
In the industry breakdown, financial services, arts and entertainment, construction, nonprofits, manufacturing and accommodation and food services experienced hiring growth. The data for educational services, insurance and transportation did not trend positively, with all of these industries witnessing notable decreases in hiring.
“Trends in the industry and regional data could indicate longer-term growth for small business hiring,” Noftsinger said. “In the geographic data specifically, significant hiring growth in the Northeast highlights the region’s more robust economic reopening and pick-up in hiring efforts.”
The June CBIZ Small Business Employment Index data follows the Q2/21 release of the CBIZ Main Street Index, which surveyed more than 2,000 businesses throughout the U.S. on their recovery from the COVID-19 pandemic. The data revealed that 85% of respondents reported a positive or very positive level of business confidence, which was an increase of 11% compared with Q1/21. However, 46% of businesses were concerned with staffing shortages.
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