June Showed Hiring Growth for Small Businesses

Rhea-AI Summary

The CBIZ Small Business Employment Index reported a 0.29% increase in hiring for June, tracking payroll trends across over 3,600 small businesses. Key sectors experiencing growth included Rental, Leasing, and Real Estate, while Retail and Food Services saw declines. The overall private-sector jobs rose by 372,000, but the national unemployment rate remained steady at 3.6%. Regional growth was strongest in the Northeast at 1.28%, while the West faced a decline of -2.35%. Despite these trends, small businesses are cautious due to inflationary pressures.

Positive

• 0.29% increase in hiring for June.
• 372,000 private-sector jobs added nationwide.
• Growth observed in Rental and Leasing Services, Arts, Entertainment, and Real Estate.

Negative

• Retail and Accommodations and Food Services experienced hiring declines.
• West region reported a significant decline of -2.35% in hiring.
• Continued caution among small businesses due to inflation.

The CBIZ Small Business Employment Index reported a hiring increase in June with significant gains in Rental, Leasing and Real Estate

CLEVELAND--(BUSINESS WIRE)-- The CBIZ Small Business Employment Index (“SBEI”) reported a seasonally adjusted increase of 0.29% in May, a modest gain overall for 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.

“Discretionary spending has been significantly impacted by rising inflation as high cost of necessary and non-substitutable goods take up a higher percentage of disposable income,” said Anna Rathbun, CFA, Chief Investment Officer, CBIZ, Inc. “The hiring trends are reflective of how Americans are spending money.”

The Bureau of Labor Statistics’ employment report indicated hiring growth. The June reading showed an overall increase of 372,000 private-sector jobs. Despite the overall hiring growth, the national unemployment rate remained unchanged from May at 3.6%. The report is inclusive of all non-farm private employers across all size businesses.

The CBIZ SBEI reported notable growth in the Northeast (1.28%). The Central (0.52%) and Southeast (0.12%) regions saw mild increases. The West (-2.35%) was the only region that saw a notable decline.

On an industry level, hiring increases were seen in Rental and Leasing Services, Arts and Entertainment, Recreation, and Real Estate. Industries that saw a decline include Retail and Accommodations and Food Services.

“Small businesses are continuing to show caution as the economy reacts to uncertainty and inflation,” added Rathbun. “A notable increase was seen in rental and leasing, which is a reaction to a decline in affordability of housing. As mortgage rates have surged in recent weeks, numerous households have been priced out of the housing market and are turning to rental opportunities.”

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

Additional takeaways from the June SBEI include:

June’s snapshot: 29% of companies in the index increased staffing, 54% made no change to their headcounts and 17% reduced employment totals.

Industries at a glance: Rental and Leasing Services, Arts and Entertainment, Recreation, and Real Estate increased hiring totals. Retail and Accommodations and Food Services saw a decline.

Geographical hiring: The Northeast (1.28%), Central (0.52%) and Southeast (0.12%) regions all experienced hiring increases. The West (-2.35%) was the only region that had a decline.

What’s next? Similar to previous months, small businesses are continuing to be affected by inflation and proceeding with caution.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220712005441/en/

Media Contact

Kara Lester

Gregory FCA for CBIZ

Kara@gregoryfca.com

610-228-2119

Source: CBIZ

FAQ

What does the CBIZ Small Business Employment Index indicate for June 2023?

The CBIZ Small Business Employment Index reported a 0.29% hiring increase in June, reflecting broader payroll trends among small businesses.

Which regions saw hiring increases according to the latest CBIZ report?

The Northeast (1.28%), Central (0.52%), and Southeast (0.12%) regions experienced hiring increases, while the West saw a decline of -2.35%.

What industries showed hiring increases in the CBIZ report for June 2023?

Notable hiring increases were reported in the Rental and Leasing Services, Arts, Entertainment, Recreation, and Real Estate sectors.

What was the overall private-sector job growth in June 2023?

The Bureau of Labor Statistics reported an overall increase of 372,000 private-sector jobs in June 2023.

How does inflation affect small businesses according to CBIZ's report?

Small businesses are showing caution in hiring and operations due to the impact of inflation on discretionary spending.