Small Business Employment Growing, Outpacing Overall Employment
The latest figures from Intuit's Small Business Employment Index show small businesses added roughly 18,000 new jobs in June. Hours worked and compensation likewise increased.
The latest figures from Intuit's Small Business Employment Index show small businesses added roughly 18,000 new jobs in June. Hours worked and compensation likewise increased.The added jobs translate to a 0.09% growth in June, for a 1.1% annual growth rate. That's a slightly lower growth rate than in previous months (see graph). "At this point in a recovery," said economist Dr. Susan Woodward, "the labor market is still sufficiently slack so small businesses should be hiring vigorously. They are hiring, but not as fast as in the first quarter."
Intuit's Small Business Employment Index continues to rise but has leveled off a little. Graph courtesy of Intuit.
Further good news comes from the fact that compensation is also increasing, albeit slightly. It's now $2,577 per month, a $7 increase from May. At the same time, monthly hours worked increased by a tenth of an hour, for a net wage gain of four cents an hour. "We do not see the same slowing in compensation as in employment or hours worked," said Woodward.
The Index is based on aggregate data from 57,000 businesses with fewer than 20 employees and that use Intuit Online Payroll.
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