Small Businesses Report Hiring Growth in July
August 09 2022 - 7:45AM
Business Wire
The CBIZ Small Business Employment Index showed
a marginal hiring uptick in July with industry trends underscoring
consumer sentiment and ongoing shifts in economic trends
The CBIZ Small Business Employment Index (“SBEI”) (NYSE: CBZ)
reported a seasonally-adjusted increase of 0.80% in July,
continuing the upward trend from June. The CBIZ SBEI tracks payroll
and hiring trends for over 3,600 companies that have 300 or fewer
employees, providing broad insight into small business trends.
“July showed us that consumers are continuing to be cautious
with their spending,” said Anna Rathbun, CFA, Chief Investment
Officer, CBIZ, Inc. “In turn, small businesses are reacting to
market conditions and the looming recession fears during a time of
year when hiring has historically been much stronger.”
The Bureau of Labor Statistics’ employment report indicated
hiring growth that beat expectations. The July reading showed an
overall increase of 528,000 private-sector jobs. Despite the
overall hiring growth, the national unemployment rate remained
stagnant with only a minor reduction to 3.5%. The report is
inclusive of all non-farm private employers across all size
businesses.
Regionally, the July results mirrored those from the previous
month with notable growth in the Northeast (2.36%) and Southeast
(1.49%) regions. The Central (0.66%) region saw a mild increase and
the West (-1.15%) was the only region that saw hiring decline.
On an industry level, hiring increases were seen in
Construction, as well as Rental and Leasing Services. Arts
Entertainment and Recreation, Education Services and Not-For-Profit
experienced reduced hiring totals.
“The regional hiring results are a positive indicator of small
businesses adapting to changing headwinds,” added Rathbun. “We are
keeping a close eye on consumer sentiment and behavior amid ongoing
economic changes, and the decreases seen in Not-For-Profit, and
Arts Entertainment and Recreation point to consumers tightening
their discretionary spending.”
To view an infographic with data from the employment index,
visit the CBIZ website.
Additional takeaways from the July SBEI include:
July’s snapshot: 24% of companies in the index increased
staffing, 55% made no change to their headcounts and 21% reduced
employment totals.
Industries at a glance: Construction and Rental and
Leasing Services experienced hiring increases. Arts and
Entertainment, Education Services, Not-For-Profit, and Recreation
saw decline.
Geographical hiring: The Northeast (2.36%), Southeast
(1.49%) and Central (0.66%) regions all experienced hiring
increases. The West (-1.15%) was the only region that had a
decline.
What’s next? While news of large corporate layoffs make
headlines, small businesses may prove more nimble in a turbulent
economy. Industries like Education Services can expect to see
hiring growth as students return to school in the coming
months.
Editor’s note: (1) The SBEI illustration is licensed
under a Creative Commons Attribution-NoDerivs 3.0 Unported License.
Based on our work at https://www.cbiz.com.
Follow CBIZ on Twitter at @CBZ or on Facebook.
About CBIZ CBIZ, Inc. is a leading provider of financial,
insurance and advisory services to businesses throughout the United
States. Financial services include accounting, tax, government
health care consulting, transaction advisory, risk advisory, and
valuation services. Insurance services include employee benefits
consulting, retirement plan consulting, property and casualty
insurance, payroll, and human capital consulting. With more than
100 Company offices in 31 states, CBIZ is one of the largest
accounting and insurance brokerage providers in the U.S. For more
information, visit www.cbiz.com.
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Media Alex Ortiz Gregory FCA for CBIZ
Alexo@gregoryfca.com
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