Small Business Hiring Experiences Flat Reading in November
12 Dezember 2023 - 2:00PM
Business Wire
The CBIZ Small Business Employment Index
revealed an unremarkable report with nominal gains in
employment
The CBIZ Small Business Employment Index (“SBEI”) reported a
seasonally adjusted increase of 0.15% in November after
experiencing two consecutive months of declines in hiring. The CBIZ
SBEI tracks payroll and hiring trends for over 3,100 companies that
have 300 or fewer employees, providing broad insight into small
business trends.
“Up to this point, month over month employment trends have
tightened in range compared to the SBEI historical data,” said Anna
Rathbun, CFA, Chief Investment Officer, CBIZ Investment Advisory
Services, LLC. “Even if small businesses are not inclined to hire
in large numbers considering the uncertain economic environment,
they are also not willing to lay off workers easily.”
The Bureau of Labor Statistics’ employment report indicated
hiring growth that barely beat expectations. The November reading
showed an overall increase of 199,000 private-sector jobs. Given
the overall hiring growth, the national unemployment rate fell
slightly to 3.7%. The report is inclusive of all non-farm private
employers across businesses of all sizes. Meanwhile, the ADP
employment report indicated hiring growth among small, medium and
large-sized companies. Its November reading showed an overall
increase of 103,000 private-sector jobs for the month. Small
businesses accounted for an increase of 6,000 of those jobs on a
seasonally adjusted, month-over-month basis. The ADP report counts
small businesses as companies with 49 or fewer employees, while the
CBIZ SBEI uses data from companies with 300 employees or fewer.
From a regional perspective, the West (1.72%) was the only
region to report an increase. The Central (0.05%) and Southeast
(-0.07%) regions both showed a flat reading, while the Northeast
(-0.28%) experienced a decline.
On an industry level, gains in employment were seen in
Management, Transportation, and Utilities. Industry decreases were
observed in Agriculture, Fishing and Hunting, Information, and
Rental and Leasing Services.
Rathbun added, “Out of the industries that shed jobs,
Information stands out. As companies tighten their belts, spending
on advertising as well as publishing, telecommunication, and
broadcasting can end up on the chopping block. Attrition in
employment for these services may help to complete the picture of
American enterprises becoming leaner through the end of the
year.”
To view an infographic with data from the employment index,
visit the CBIZ website.
Additional takeaways from the November SBEI include:
November’s snapshot: 19% of companies in the index
increased staffing, 61% made no change to their headcounts and 20%
reduced employment totals.
Industries at-a-glance: Management, Transportation, and
Utilities experienced hiring gains. Decreases were seen in
Agriculture; Fishing and Hunting, Information; and Rental and
Leasing Services.
Geographical hiring: The West (1.72%) reported a hiring
increase, while the Central (0.05%) and Southeast (-0.07%) regions
both showed a flat reading. The Northeast (-0.28%) experienced a
decline.
What’s next? While most areas of the United States saw
flat to negative employment trends, the West stood out with a large
increase. This increase was broad-based, not isolated to any
industry or sector that might suggest something more meaningful. It
remains to be seen how the year will wrap up.
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 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 120 offices
in 32 states, CBIZ is one of the largest accounting and insurance
brokerage providers in the U.S. For more information, visit
https://www.cbiz.com.
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Media Alex Ortiz Gregory FCA for CBIZ
Alexo@gregoryfca.com 610-228-2119
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