Small Business Hiring Trends Gain Momentum in April

Rhea-AI Summary

The CBIZ Small Business Employment Index (SBEI) reported a seasonally adjusted increase of 3.57% for April, indicating heightened hiring efforts among small businesses. Tracking over 3,500 companies, the SBEI highlights significant employment growth, especially in the Northeast (5.94%) and West (3.97%). The report also notes a gain of 742,000 private-sector jobs and 235,000 new jobs in small businesses. Growth was particularly notable in the Arts and Entertainment, Agriculture, and Food Services sectors. However, future hiring trends may slow as the U.S. fully reopens.

Positive

• 3.57% increase in the Small Business Employment Index for April.
• 742,000 private-sector jobs created, indicating strong economic recovery.
• Regional hiring growth led by Northeast (5.94%) and West (3.97%).
• Notable gains in Arts and Entertainment, Agriculture, and Accommodation sectors.

Negative

• Expected slowdown in hiring once the U.S. is fully reopened.
• Potential volatility in future readings due to COVID-19 impacts.

The CBIZ Small Business Employment Index (“SBEI”) reported a seasonally adjusted gain of 3.57% for April. The remarkable gain in the reading highlights the quickened pace of hiring efforts as small businesses engage in increased economic activity. The CBIZ SBEI tracks payroll and hiring trends for over 3,500 companies that have 300 or fewer employees, providing broad insight into small business trends.

“While small business hiring increased in February and March, the momentum accelerated noticeably in April, with the CBIZ SBEI recording its largest seasonally adjusted spike,” said Philip Noftsinger, Executive Vice President, CBIZ, Inc. “This growth period could have legs, but we expect it to begin to slow once the U.S. is fully reopened. We also anticipate potential volatility when the reading factors in the May 2020 drop-off, as the seasonality weighting now includes periods of closure from COVID-19.”

Prominent hiring gains were detailed in the ADP and Moody’s employment report as well. According to the report, private-sector jobs jumped by 742,000 on a month-over-month, seasonally adjusted basis, and small business jobs climbed by 235,000. The ADP and Moody’s report counts small businesses as companies with 49 or fewer employees, while the CBIZ SBEI uses data from companies with 300 employees or fewer.

Reopening efforts underpinned regional data for the CBIZ SBEI. The Northeast (5.94%), West (3.97%) and Central (3.3%) regions experienced the greatest hiring growth. The index reported a more moderate increase in the Southeast (2.5%).

Industry data also points to economic reopening as a key trend. Arts and Entertainment accounted for the most growth, followed by Agriculture, Accommodation and Food Services, Transportation, and Construction. Other industries saw hiring decrease, including Real Estate and Utilities.

“Historically, it’s not surprising for hiring to increase in Agriculture and Construction in the early spring, but growth stands out in Arts and Entertainment and Accommodation and Food Services, as these industries continued their resurgence from the pandemic’s impact,” Noftsinger noted. “We’ll be looking for indicators of longevity and following how much these industries support GDP.”

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

Additional takeaways from the April SBEI include:

April’s snapshot: 26% of companies in the index reinforced staffing, 55% left headcounts unchanged and 19% lowered employment levels.

Industries at a glance: Arts and Entertainment, Agriculture, Accommodation and Food Services, Transportation, and Construction reported hiring gains, but Real Estate and Utilities reported declines.

Geographical hiring: The Northeast (5.94%), West (3.97%), Central (3.3%) and Southeast (2.5%) U.S. all ramped up hiring efforts.

What’s next? While hiring could continue to increase through the second quarter, the trend may be less pronounced when more regions are fully operational across the U.S.

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/20210507005056/en/

FAQ

What is the CBIZ Small Business Employment Index reported in April 2023?

The CBIZ Small Business Employment Index reported a seasonally adjusted increase of 3.57% for April 2023.

Which regions saw the most hiring growth according to the CBIZ SBEI?

The Northeast (5.94%) and West (3.97%) regions experienced the greatest hiring growth.

How many new private-sector jobs were created in April according to the report?

A total of 742,000 new private-sector jobs were created in April.

Which industries reported hiring gains in April 2023?

Industries like Arts and Entertainment, Agriculture, and Accommodation and Food Services reported significant hiring gains.

What future hiring trends are anticipated according to the CBIZ report?

The report anticipates a potential slowdown in hiring trends as the U.S. fully reopens.