Small Business Hiring Rebounds in August After Two Consecutive Months of Decline
The CBIZ Small Business Employment Index (SBEI) reported a seasonally adjusted increase of 0.66% in August, rebounding after two months of decline. This growth contrasts with the ADP report, which showed a decrease of 9,000 jobs for small businesses. Regionally, the Southeast (1.07%) and Central (1.04%) regions saw the largest hiring increases, while the West (-0.79%) experienced a decline.
Industries leading in hiring were Educational Services, Technology and Life Sciences, and Transportation. However, economic indicators suggest potential challenges ahead. The retention rate reached 61% in August, the highest since the post-pandemic labor shortage began, as small businesses compete for skilled workers.
Il CBIZ Small Business Employment Index (SBEI) ha riportato un aumento aggiustato per fattori stagionali dello 0,66% ad agosto, recuperando dopo due mesi di calo. Questa crescita è in contrasto con il rapporto ADP, che ha mostrato una diminuzione di 9.000 posti di lavoro per le piccole imprese. A livello regionale, le zone Sud-Est (1,07%) e Centrale (1,04%) hanno registrato i maggiori aumenti nelle assunzioni, mentre l'Ovest (-0,79%) ha vissuto un declino.
Le industrie che hanno guidato le assunzioni sono state Servizi Educativi, Tecnologia e Scienze della Vita, e Trasporti. Tuttavia, gli indicatori economici suggeriscono potenziali sfide in arrivo. Il tasso di retention ha raggiunto il 61% ad agosto, il più alto dall'inizio della scarsità di lavoro post-pandemia, poiché le piccole imprese competono per lavoratori qualificati.
El CBIZ Small Business Employment Index (SBEI) reportó un aumento ajustado estacionalmente del 0,66% en agosto, recuperándose después de dos meses de disminución. Este crecimiento contrasta con el informe de ADP, que mostró una disminución de 9,000 empleos para pequeñas empresas. A nivel regional, las regiones del Sureste (1,07%) y Central (1,04%) vieron los mayores aumentos en contrataciones, mientras que el Oeste (-0,79%) experimentó una caída.
Las industrias que lideran las contrataciones fueron Servicios Educativos, Tecnología y Ciencias de la Vida, y Transporte. Sin embargo, los indicadores económicos sugieren posibles desafíos por delante. La tasa de retención alcanzó el 61% en agosto, la más alta desde que comenzó la escasez de mano de obra post-pandémica, ya que las pequeñas empresas compiten por trabajadores calificados.
CBIZ 중소기업 고용 지수(SBEI)는 계절 조정된 0.66% 증가를 보고하며, 두 달간의 감소 후 반등했습니다. 이 성장은 9,000개의 일자리가 줄어든 ADP 보고서와 대조적입니다. 지역적으로 동남부(1.07%)와 중앙(1.04%) 지역이 가장 큰 고용 증가를 보였고, 서부(-0.79%)는 감소를 경험했습니다.
채용을 주도한 산업은 교육 서비스, 기술 및 생명 과학, 운송이었습니다. 그러나 경제 지표는 앞으로의 잠재적 어려움을 시사합니다. 유지율은 8월에 61%로, 팬데믹 이후 노동력 부족이 시작된 이후 가장 높은 수치로, 중소기업이 숙련된 노동자를 모집하기 위해 경쟁하고 있습니다.
L'Index de l'Emploi des Petites Entreprises de CBIZ (SBEI) a rapporté une augmentation ajustée saisonnièrement de 0,66% en août, rebondissant après deux mois de baisse. Cette croissance contraste avec le rapport ADP, qui a montré une diminution de 9 000 emplois pour les petites entreprises. Régionalement, les régions du Sud-Est (1,07%) et Centrale (1,04%) ont connu les plus grandes augmentations d'embauche, tandis que l'Ouest (-0,79%) a connu une baisse.
Les secteurs qui ont mené en matière d'embauche étaient Services Éducatifs, Technologie et Sciences de la Vie, et Transport. Cependant, les indicateurs économiques suggèrent des défis potentiels à venir. Le taux de rétention a atteint 61% en août, le plus haut depuis le début de la pénurie de main-d'œuvre post-pandémique, alors que les petites entreprises rivalisent pour attirer des travailleurs qualifiés.
Der CBIZ Small Business Employment Index (SBEI) meldete einen saisonal angepassten Anstieg von 0,66% im August, nachdem es zwei Monate lang einen Rückgang gab. Dieses Wachstum steht im Gegensatz zu dem ADP-Bericht, der einen Rückgang von 9.000 Arbeitsplätzen für kleine Unternehmen zeigte. Regional verzeichneten die Regionen Südost (1,07%) und Zentral (1,04%) die größten Einstellungszuwächse, während der Westen (-0,79%) einen Rückgang erlebte.
Die Branchen, die bei Einstellungen führend waren, umfassten Bildungsdienste, Technologie und Lebenswissenschaften sowie Transport. Es deuten sich jedoch wirtschaftliche Indikatoren an, die auf mögliche Herausforderungen hinweisen. Die Retentionsrate erreichte 61% im August, den höchsten Wert seit Beginn des arbeitsmarkts nach der Pandemie, da kleine Unternehmen um qualifizierte Arbeitskräfte konkurrieren.
- Seasonally adjusted increase of 0.66% in small business hiring for August
- Southeast and Central regions showed hiring increases of 1.07% and 1.04% respectively
- Educational Services, Technology and Life Sciences, and Transportation industries led in hiring
- Small business employee retention rate reached 61%, the highest since the post-pandemic labor shortage
- ADP report showed a decrease of 9,000 jobs for small businesses
- West region experienced a hiring decline of 0.79%
- Accommodation and Food Services, Agriculture, Forestry, Fishing and Hunting, and Insurance reported the largest job losses
- Economic indicators suggest potential challenges ahead for the labor market
Insights
The August CBIZ Small Business Employment Index reveals a 0.66% increase in hiring, marking a rebound after two months of decline. This uptick, however, contrasts with the broader economic indicators. The BLS report showed 142,000 new private-sector jobs, falling short of expectations, while the ADP report indicated a loss of 9,000 jobs in small businesses. These conflicting data points suggest a complex and potentially weakening labor market.
The 61% retention rate among small businesses is noteworthy, indicating a competitive landscape for skilled workers. However, this high retention might be challenged if economic conditions deteriorate. The regional disparity in hiring, with the West experiencing a decline, could signal localized economic pressures. Industries like Educational Services and Technology showing growth might reflect seasonal patterns and ongoing digital transformation efforts.
Investors should monitor these trends closely, as they may indicate a shift in economic momentum that could impact various sectors and market segments.
The August CBIZ SBEI data presents a mixed economic picture. While the 0.66% hiring increase is positive, it comes after two months of decline and amid concerning broader economic signals. The JOLTS report showing job openings at their lowest since early 2021 is particularly alarming, suggesting a cooling labor market.
The divergence between small business hiring and larger company trends indicated by the ADP report is noteworthy. This could reflect small businesses' agility in responding to short-term demands, but also their vulnerability to economic shifts. The regional variations in hiring, especially the decline in the West, may indicate localized economic challenges that could spread.
Looking ahead, the sustainability of August's gains is questionable. If economic conditions weaken, we might see not only a hiring slowdown but also a decline in the currently high retention rates. Investors should prepare for potential increased market volatility as these labor market dynamics play out.
The CBIZ Small Business Employment Index reports August job growth, but concerns loom as economic indicators signal potential trouble ahead
The Bureau of Labor Statistics’ employment report indicated hiring growth that missed expectations. The August reading showed an overall increase of 142,000 private-sector jobs. The national unemployment rate fell slightly to
"This summer's data reflects a weakening labor market,” said Anna Rathbun, CFA, Chief Investment Officer, CBIZ Investment Advisory Services, LLC. “The Job Openings and Labor Turnover Survey (JOLTS) report for July showed job openings at their lowest level since early 2021, while the ADP report for August fell below expectations, and the BLS report disappointed with further downward revisions. We are at a point where we can no longer say with confidence that the labor market is merely correcting from the post-pandemic surge. The data indicates a softening economy, with leverage shifting from employees back to employers."
Regionally, the Southeast (
On an industry level, Educational Services; Technology and Life Sciences; and Transportation saw an uptick in hiring. Accommodation and Food Services; Agriculture, Forestry, Fishing and Hunting; and Insurance reported the largest job losses.
Rathbun added, “August saw a broad gain in job growth across a diverse range of industries, providing some relief following the declines experienced in June and July. As we head into the final quarter of the year, the sustainability of these gains remains uncertain, especially with economic indicators suggesting potential challenges ahead. The coming months will be crucial in determining whether this upward trend in hiring can be maintained.”
To view an infographic with data from the employment index, visit the CBIZ website.
Additional takeaways from the August SBEI include:
August’s snapshot:
Industries at-a-glance: In August, hiring increases were led by Educational Services; Technology and Life Sciences; and Transportation. The largest losses were seen in Accommodation and Food Services; Agriculture, Forestry, Fishing and Hunting; and Insurance
Geographical hiring: The Southeast (
What’s next? What stands out is that employers are retaining workers at the highest rate since the post-pandemic labor shortage began. Before the pandemic, the CBIZ Small Business Employment Index showed an average retention rate of
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.
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Alex Ortiz
Gregory FCA for CBIZ
Alexo@gregoryfca.com
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Source: CBIZ
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