Today, CBIZ Payroll Services — a business unit within professional and financial services firm CBIZ, Inc. announced the CBIZ Small Business Employment Index for August decreased by 1.01 percent. This was the second consecutive monthly decline in employee payrolls within the small business surveyed — an indication that small businesses remain cautious and fearful that the economy’s recovery is stalling.
The index has seen correlation with the federal government’s Bureau of Labor Statistics’ report throughout 2010 and serves as a preview to the report to be released on Friday, September 3.
Additional take-away points from the August data includes:
– More companies are cutting staff: The payroll data showed that 28 percent of the companies managed by CBIZ Payroll Services slashed their headcount during the month of August, compared to 24 percent of companies doing so in July. Year-to-date the data shows more jobs have been added than cut.
– More signs of caution: Of the 2,964 companies included in the survey in August only 22 percent added employees and 50 percent made no change. July data showed that 26 percent of companies added staff; while 50 percent maintained headcount (2,917 companies represented the total companies during the July index).
– What to watch: Going forward, seasonal occupation will have more effect on employment numbers as the summer ends.
Philip Noftsinger, Business Unit President for CBIZ Payroll Services, monitors the monthly data on behalf of CBIZ and notes, “We’ve been experiencing relative stability in the overall employment market. We tracked only marginal changes in employment levels, which are consistent with the period of limited economic growth that the economy has experienced since the recession ended.”
Currently, CBIZ Payroll Services manages payrolls for more than 2,900 businesses that employ fewer than 300 people. The sample reflects a broad array of industries and geographies corresponding to the markets across the United States where CBIZ provides services. Noftsinger is available for media interviews to discuss small to mid-market employment trends and other payroll trends impacting the American business environment.
(Editor’s Note: The United States Department of Labor’s “Employment Situation for August 2010″ numbers are announced on September 3, 2010 at 8:30 A.M. Easter Time. Also, a chart illustrating the trend-lines is available for interested editorial outlets.)
