Philip Noftsinger, business unit president for CBIZ Payroll Services, says, “It comes as no surprise that employment levels in the small business sector show a reduction for the month of July. There is a lot of negativity in the marketplace right now, from the debate over the nation’s debt limit to the recent GDP numbers for the previous two quarters. Because of this negative information, there are many small business leaders that are resisting the need to replace regular attrition as they wait to see if a recession is imminent.”
Additional take-away points from the July data set include:
- At a glance: Of the companies that were surveyed, the data shows that 25 percent reported a decrease in employee headcount while 25 percent increased staffing. 50 percent of the companies involved in the survey maintained their number of employees.
- Small business sector: The reduction in employment is expected due to ongoing negativity and uncertainty in the marketplace. Historically, the small business sector tends to thrive during periods of long-term economic growth. Without clear signs ahead, a major improvement change over the short-term is unlikely.
- What to watch: Clarity presently lacks due to the new debt deal, doubts as to whether the country will retain its AAA credit rating, whispers of a double dip recession and future tax re-structuring should all continue to affect small business owners.
“I believe we will continue to see fluctuating employment numbers until the small business owner can gain more clarity as to what the next six to 12 months will look like from an economic, regulatory and tax perspective,” Noftsinger continued.
