Small business hiring has slowed and revenues dipped in July, says a new report
The monthly Intuit Small Business Employment Index—based on data from approximately 82,000 Intuit small business customers with fewer than 20 employees—showed employment increased by just 0.17 percent, or 35,000 jobs. Based on these numbers and revised figures from the Bureau of Labor Statistics, Intuit also revised downward the previously reported June growth rate to 0.2 percent. That’s 40,000 jobs. (The previous figure was 75,000.)
Geographically, every region in the country showed growth except the West North Central division, which declined by .10 percent, and the Middle Atlantic, which remained flat. Michigan posted the highest growth rate: 0.7 percent.
Meanwhile, the company’s Small Business Revenue Index—based on data from QuickBooks Online—showed small firm takings decreased by 0.5 percent from June. The accommodation and food service sector took the biggest hit—0.7 percent—followed by the retail industry, with 0.5 percent.
The construction industry, which tends to pick up in the summer, had the smallest decline: 0.01 percent. The industry actually saw an increase in revenue in May and the smallest decline in June—significant because although construction accounts for eight percent of employment overall, it is roughly 20 percent of employment for small companies.
“Any change in this sector is important,” said Susan Woodward, the economist who worked with Intuit to create the indexes. The social assistance sector also suffered marginal shrinkage: 0.04 percent.
Compensation increased 0.3 percent in July. It’s now $2,724 per month, up just $7 from the revised June figure of $2,717 per month. Average monthly hours worked dipped 0.3 percent (24 minutes) in July to 106.3 hours, which is part-time work. The equivalent annual wage is $32,700 per year.How does your experience in July compare to this report?