The CBIZ Small Business Employment Index reported a slight decline in employment to end the second quarter.
Cleveland, July 9, 2024–(BUSINESS WIRE)–The CBIZ Small Business Employment Index (SBEI) recorded a seasonally adjusted decrease of 0.08% in June, a month in which hiring momentum is typically driven by seasonal trends. The CBIZ SBEI tracks payroll and employment trends for more than 2,900 businesses with 300 or fewer employees, providing broad insight into small business trends.
The Bureau of Labor Statistics’ employment report showed job growth in line with expectations. The June figure showed an overall increase of 206,000 private sector jobs. The national unemployment rate rose slightly to 4.1%. The report includes all nonfarm private employers across businesses of all sizes. Similarly, the ADP employment report showed job growth at small and large businesses. The June figure showed an overall increase of 150,000 private sector jobs. On a seasonally adjusted month-over-month basis, small business employment increased by 5,000 jobs. The ADP report counts small businesses as businesses with 49 employees or fewer, while the CBIZ SBEI uses data from businesses with 300 employees or fewer.
“There is a wealth of economic data pointing to a cooling job market,” said Anna Rathbun, CFA, Chief Investment Officer at CBIZ Investment Advisory Services, LLC. “The Bureau of Labor Statistics’ June labor market update indicated continued weakness with strong nonfarm payroll growth and a downward revision of job growth from the previous month. If this trend continues, it will likely favor the Federal Reserve’s decision to lower interest rates, but it will be an uncertain time for small businesses and job seekers.”
Regionally, both the Central (0.67%) and Northeast (0.25%) regions experienced job gains. The West (-1.89%) saw the largest decline in employment, followed by the Southeast (-1.27%).
At the industry level, administrative and support services, retail, and technology and life sciences saw the largest job gains, while accommodation and food services, arts, entertainment and recreation, and nonprofit organizations saw job losses.
Rathbun added, “While June is typically a high-summer hiring month, this time of year presented some unusual challenges. Healthy job creation is typically expected in food services during the summer, and that sector was hit the hardest. Challenges in the arts, entertainment, and recreation industry in June were also surprising. The weakness in the service industry was supported by the BLS’ June employment report, which showed a loss of 2,400 jobs in the accommodation and food services industry.”
To view an infographic containing data from the Employment Index, visit the CBIZ website.
Additional takeaways from the June SBEI include:
June Snapshot: Of the companies in the index, 19% increased their workforce, 60% kept their employee numbers constant, and 21% reduced their total workforce.
Industry Overview: Administrative and support services, retail, and technology and life sciences sectors saw job gains. Accommodation and food services, arts, entertainment and recreation, and nonprofit organizations saw job losses.
Geographic Employment: The Central (0.67%) and Northeast (0.25%) regions reported job gains, while the West (-1.89%) and Southeast (-1.27%) regions reported job losses.
What’s next? It remains to be seen what the rest of the summer will hold for businesses that are symbolic of summer activities like travel and leisure — whether these trends will continue into July and August, or if June was an exception.
Editor’s note:
(1) SBEI illustrations are licensed under a Creative Commons Attribution-NoDerivatives 3.0 Unported License. Based on our work at https://www.cbiz.com.
Follow CBIZ on Twitter translation: Or on Facebook.
About CBIZ
CBIZ is a leading provider of financial, insurance and advisory services to businesses across the United States. Financial services include accounting, tax, government health consulting, transaction advisory, risk advisory and valuation services. Insurance services include employee benefits consulting, retirement plan consulting, property and casualty insurance, payroll and human resources consulting. With more than 120 offices in 32 states, CBIZ is one of the largest accounting and insurance brokerage providers in the United States. For more information, visit https://www.cbiz.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240709998344/en/
contact address
media
Alex Ortiz
CBIZ Gregory FCA
email address
610-228-2119
