“Employment is up again for small business this month,” said Susan Woodward, the economist who worked with Intuit to create the Index. “The gain, at an annual rate, is not quite as large as last month but it’s still encouraging. Plus there is one more sign of strength – employment was up for the first time in many months in all nine U.S. divisions. On the state level, employment was up for many of the ‘sand states’ – Oregon, California, Arizona, and Florida – or those states hit hardest by falling real estate prices.”
Based on this latest data, the employment growth rate for February was revised slightly up to 0.3 percent, equating to 60,000 jobs added for the month and a 3.7 percent annual growth rate. Since the growth trend first began in October 2009, small business jobs have increased by a revised estimate of 820,000.
Hours Worked Up; Compensation Flat
Small business hourly employees worked an average of 107.7 hours in March, making for a 24.9-hour work week. This is a 0.12 percent rise from the revised February figure of 107.6 hours.
“Hours worked are up again, about as strongly as last month,” Woodward said. “The combination of rising hours and rising employment suggests the atmosphere is improving for small businesses.”
Average monthly pay for all small business employees was $2,614 per month in March. This is a 0.03 percent decrease, which is essentially flat, compared to the February revised estimate of $2,615 per month. This translates to wages of about $31,400 per year, which is part-time work for many small business employees.
“There is no sign of any pressure on small businesses to pay people more,” continued Woodward. “This should not be a surprise given the high unemployment rate, especially among unskilled workers, and considering that small businesses use relatively more unskilled labor than larger businesses do.”
Small Business Employment by Geography
The Intuit Index also breaks down employment by census divisions and states across the country.
“We’re thrilled to see that all nine U.S. divisions are now showing employment growth,” said Nora Denzel, senior vice president and general manager of Intuit’s Employee Management Solutions division. “This includes the West North Central division, which had not seen growth in employment for many months. At the same time, most states saw increases in employment, with only slight decreases in Georgia and New York.”
Small Business Employment by U.S. Census Division continues to grow across the country including the West North Central division. The data reflects employment from approximately 64,000 small business employers who use Intuit Online Payroll. The month-to-month changes are seasonally-adjusted and informative about the overall economy.
Small Business Employment by State is up for many states across the country. The states above reflect those for which Intuit Online Payroll has more than 1,000 small business firms represented. The month-to-month changes are seasonally-adjusted and informative about the overall economy.
