Small Business Employment Slightly Increases While Revenue Declines
These are among the results for the monthly
The Small Business Employment Index shows that employment increased by 0.17 percent in July, for an annualized growth rate of 2.1 percent. This equates to approximately 35,000 new jobs created, although Intuit is recalibrating the index and expects these numbers to change.
Average monthly compensation grew by 0.3 percent, or
The Small Business Revenue Index indicates that small business revenue
decreased by 0.5 percent from the previous month. The accommodation and
food services sector saw the biggest decline at 0.7 percent, followed by
the retail industry at 0.5 percent. The index is based on data from QuickBooks
Online and covers the period from
"This month's indexes indicate a mixed bag for small businesses," said
"The silver lining is the construction industry, which saw an increase in revenue in May and the smallest decline in June. While construction accounts for about 8 percent of employment among all companies, it accounts for roughly 20 percent of employment for small companies, so any change in this sector is important."
Small Business Revenue Index
Small businesses overall saw declines in revenue in June. The construction industry and health care and social assistance sectors saw the smallest declines, at 0.01 and 0.04 percent respectively.
|Sector||Change in Revenue|
|Accommodation, food services and drinking places||- 0.70%|
|Retail trade||- 0.50%|
|Other services||- 0.50%|
|Professional, scientific and technical services||- 0.40%|
|Real estate and rental and leasing||- 0.19%|
|Health care and social assistance||- 0.04%|
Small Business Employment Index
Based on July's numbers and revised national employment data from the
Decrease in Hours Worked, Increase in Compensation
Small business hourly employees worked an average of 106.3 hours in July, a decrease of 0.3 percent, or around 24 minutes, from the revised figure of 106.7 hours in June, making for a 24.5-hour workweek.
Average monthly pay for all small business employees increased to
Small Business Employment by Geography
The Employment Index showed growth in overall employment in July for all
regions except for the West North Central division, which decreased by
0.10 percent, and the Middle Atlantic, which remained flat. A
state-by-state breakdown showed increases in all states that the index
covers, with the exception of
|U.S. Census Division||Percent Change in Employment|
|East North Central||+0.4%|
|West North Central||-0.10%|
|East South Central||+0.4%|
|West South Central||+0.2%|
Small Business Employment by U.S. Census Division continues to grow in most parts of the country. The data reflects employment from approximately 82,000 small business employers, a subset of small businesses that use Intuit Online Payroll. The month-to-month changes are seasonally adjusted and informative about the overall economy.
|State||Change in Employment|
Small Business Employment increased for most states in which Intuit Online Payroll has more than 1,000 small business firms. The month-to-month changes are seasonally adjusted and informative about the overall economy.
About The Intuit Small Business Indexes
The Intuit Small Business Indexes provide unique, near real-time information each month on the activity of the smallest businesses in the U.S. in terms of revenue, hiring and compensation trends. The Revenue Index is based on anonymized, aggregated data from 150,000 small businesses, a subset of users that use Intuit's QuickBooks Online financial management offering. The Employment Index is based on anonymized, aggregated data from 82,000 small business employers, a subset of users that use Intuit Online Payroll. Together, the indexes provide a more complete picture of the economic health of the nation's small businesses. More information on the Intuit Small Business Indexes is available at index.intuit.com.
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