Since mid 2002, American Express OPEN has conducted a series of semi-annual surveys among small business owners—specifically those with 1 to 100 employees. The goal of the surveys is to learn more about small business owner activities, plans and their overall outlook, and to share those findings with small business stakeholders nationwide.
This brief report, Trends in Small Business Hiring: 2002-2011, reviews results among all 19 surveys conducted over the past 10 years, focusing on a single question inquiring about hiring plans over the next six months. Business owners have been asked in each of the Small Business Monitor surveys whether they will be hiring any new full-time or part-time employees over the next six months, will have to cut back on staff, or if their employment will likely stay the same.
In this analysis, the share of owners planning to increase or reduce staff is tracked over time. A “net hiring score” is also utilized, whereby the percent of firms that are planning to reduce jobs is subtracted from the percent that are planning to hire. In the fall of 2002, for example, 26 percent of small businesses across the country were planning to hire and 7 percent were planning to reduce employment, for a net hiring score of +19. The latest survey sees a net hiring score of +22, with 31 percent planning to hire new employees and 9 percent planning to cut back on staff. This report examines changes that have been seen over the past decade—both overall and by gender of owner, region, industry and firm size—are the focus of this report.
Download the complete Small Business Monitor Trend Analysis: Small Business Hiring Plans.
Key findings
- While optimism has wavered and growth in Gross Domestic Product has faltered over the past decade, small business owners have held the line on staffing and protected their employees. Although at any given time most small business owners are not looking to increase staffing, the share of those planning to add staff has consistently outnumbered those looking to reduce staffing by a substantial margin throughout the course of the Small Business Monitor surveys.
- The likelihood of hiring among small firms increases with firm size. Firms with $500,000 or more in sales as well as those with 20 or more employees are consistently more likely to be looking to increase staffing—albeit not yet at the levels seen prior to the 2008 recession.
- Looking at differences in hiring outlook by the gender of the owner shows no consistent differences over time: women have been just as likely to be seeking to add staff over the past decade as their male counterparts.
- Regional differences in hiring have lessened since the 2008 recession, while industry differences have increased. Firms in the South are now the most likely to be seeking to add staff, while retail continues to lag.
Download the complete Small Business Monitor Trend Analysis: Small Business Hiring Plans.
Image Credit: The Travelmart, Inc., Linda M. Lawson, Westlake, OH, Member Since: 1992