CBIZ Small Business Employment Index Shows September Slowdown in Hiring

Business Wire

CLEVELAND--(BUSINESS WIRE)-- Small businesses with 300 or fewer employees showed a decrease in month-by-month hiring of 1.0% in September, according to the latest CBIZ Small Business Employment Index (SBEI).

Typically, small businesses shed seasonal workers in advance of having a lean labor pool in the fall months. But this year’s 1.0% decrease was a worse mark than the previous five September periods, says Philip Noftsinger, Executive Vice President, CBIZ Employee Benefits.

“In addition to trade war winds, the overall political environment doesn’t provide a great deal of predictability regarding future fiscal policy. The Federal Reserve does seem ready to move should any major macroeconomic metrics show slippage. Consistent monetary policy could provide some level of stability to employee numbers,” Noftsinger says.

Industries that showed notable declines were Health Care, Professional Services, Retail, Construction, Non-Profits, and Arts and Entertainment. The industry primarily showing growth was Educational Services, as typical for the month.

ADP and Moody’s reported Wednesday that the private sector posted an increase of 135,000 jobs in September on a month-over-month, seasonally adjusted basis. Small business jobs gained by 30,000 according to the ADP and Moody’s report, which classifies small businesses as companies with 49 or fewer employees.

The CBIZ SBEI tracks hiring trends for over 3,700 companies that have 300 or fewer employees, providing a broader insight into small business trends. CBIZ, Inc. provides payroll management services for thousands of companies throughout the country.

To view an infographic with data from the employment index, visit the CBIZ blog.

Additional takeaways from the September SBEI include:

September’s snapshot: When compared to the August SBEI, 19% of companies increased headcounts, 48% refrained from making labor changes and 25% decreased employee totals. Since the SBEI’s inception in June 2009, the September reading has seen an average hiring increase of 0.06%.

Industries at a glance: Of the industries in the index, only Educational Services showed gains. Health Care, Professional Services, Retail, Construction, Non-Profits, and Arts and Entertainment all posted declines.

Geographical hiring: In September, all four geographical regions showed declines, with the Northeast showing the most.

What’s next? Future Federal Reserve decisions on its key interest rate could help alleviate pressures caused by an unpredictable political environment and continuing trade wars.