U.S. small business employment increased in April, reversing a
three-month trend of slow to no growth. Meanwhile, employees worked
about the same number of hours, while their monthly wages increased
slightly. In addition, small business revenue declined 0.7 percent in
March.
Those are among the findings of the monthly Intuit
Inc. (Nasdaq:INTU) Small Business
Employment and Revenue Indexes. This month’s figures revealed:
-
Small businesses added 25,000 jobs in April, which translates to more
than 600,000 jobs added since March 2010.
-
Employees’ average monthly compensation grew 0.06 percent in April, an
increase of $2 from March’s revised figure.
-
Average monthly hours worked by hourly employees remained essentially
flat in April, declining just 0.05 percent, which equates to three
minutes.
The employment index is based on data from Intuit
Online Payroll and QuickBooks
Online Payroll, covering the period from March 24 through April 23.
“This month’s employment increase comes after three successive months
with little-to-no small business employment growth. In fact, it’s the
fastest rate we’ve seen over the past year,” said Susan
Woodward, the economist who works with Intuit to create the indexes.
“Despite this growth, these figures do not paint an optimistic picture.
We still have an economy with high unemployment.
“The hiring rate remains low, and has hardly budged from the low rate to
which it fell in April of 2009. Job turnover in the entire economy, not
just small business, remains below the levels seen before the beginning
of the recession.”
Hours Worked Essentially Flat, Compensation Rises
Hourly small business employees worked an average of 108.6 hours in
April, essentially the same as in March. The 0.05 percent decline
equates to a three-minute decrease, translating to a 25.1-hour work week.
Average monthly pay for small business employees increased slightly,
rising $2 to $2,741 in April. The equivalent yearly wages would be about
$32,900. The hourly wage for small business remained flat at $15.90 for
the third consecutive month, which is well above the minimum wage. This
total includes wages that small business owners pay to themselves.
Geographic Growth Uniform
The April increase in small business hiring, though small, was nearly
uniform across the nation; only Minnesota showed a decline among the
states tracked by the Employment Index. Hawaii, Kentucky, Nevada and
Virginia showed the highest percentage rise in small business employment.
State
|
|
% Change
|
Alabama
|
|
0.2
|
Arizona
|
|
0.16
|
Arkansas
|
|
0.13
|
California
|
|
0.15
|
Colorado
|
|
0.09
|
Connecticut
|
|
0.06
|
Florida
|
|
0.16
|
Georgia
|
|
0.08
|
Hawaii
|
|
0.3
|
Idaho
|
|
0.1
|
Illinois
|
|
0.03
|
Indiana
|
|
0.07
|
Iowa
|
|
0.07
|
Kansas
|
|
0.09
|
Kentucky
|
|
0.3
|
Louisiana
|
|
0.03
|
Maryland
|
|
0.11
|
Massachusetts
|
|
0.01
|
Michigan
|
|
0.11
|
Minnesota
|
|
-0.03
|
Mississippi
|
|
0.18
|
Missouri
|
|
0.01
|
Nebraska
|
|
0.1
|
Nevada
|
|
0.3
|
New Jersey
|
|
0.06
|
New Mexico
|
|
0.09
|
New York
|
|
0.16
|
North Carolina
|
|
0.08
|
Ohio
|
|
0.08
|
Oklahoma
|
|
0.11
|
Oregon
|
|
0.19
|
Pennsylvania
|
|
0.11
|
South Carolina
|
|
0.14
|
Tennessee
|
|
0.05
|
Texas
|
|
0.18
|
Utah
|
|
0.12
|
Virginia
|
|
0.3
|
Washington
|
|
0.12
|
Wisconsin
|
|
0.09
|
Small Business Employment results were mostly positive for the
states in which Intuit Online Payroll and QuickBooks Online Payroll has
more than 1,000 small business firms. The month-to-month changes are
seasonally adjusted and informative about the overall economy.
Small Business Revenue Declines Continue
The March Revenue Index showed small business revenue decreased 0.7
percent on a per-business basis. In March, only businesses in the
professional services category registered revenue gains, while the
others reported declines.
The real estate services industry showed the largest revenue decline at
1.2 percent, followed by the retail and health care services sectors,
both dropping 0.5 percent.
This index is based on data from QuickBooks
Online, covering the period from March 1-31.
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 Employment
Index is based on anonymized, non-identifiable aggregated data from
approximately 200,000 small business employers, a subset of users that
use Intuit Online Payroll and QuickBooks
Online Payroll. The Revenue Index is based on anonymized,
non-identifiable aggregated data from approximately 150,000 small
businesses, a subset of users that use Intuit’s QuickBooks
Online financial management offering
and are matched in Dun & Bradstreet’s
small business industry classifications. 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.
About Intuit Inc.
Intuit Inc. creates business and
financial management solutions that simplify the business of life for
small businesses, consumers and accounting professionals.
Its flagship products and services include QuickBooks®, Quicken®
and TurboTax®, which make
it easier to manage small
businesses and payroll
processing, personal
finance, and tax
preparation and filing. Mint.com
provides a fresh, easy and intelligent way for people to manage their
money, while Demandforce®
offers marketing and communication tools for small businesses. ProSeries®
and Lacerte® are Intuit's
leading tax preparation offerings for professional accountants.
Founded in 1983, Intuit had revenue of $4.2 billion in its fiscal year
2013. The company has approximately 8,000 employees with major offices
in the United States, Canada,
the United Kingdom, India and
other locations. More information can be found at www.intuit.com.
Intuit and the Intuit logo, among others, are registered trademarks
and/or registered service marks of Intuit Inc. in the United States and
other countries. The Intuit Small Business Payroll Index is copyrighted
by Intuit. Its contents may not be resold or modified in any way. It can
be linked to and referenced with the following attribution: “Intuit
Small Business Employment Index © Intuit Inc. All rights reserved.”
These Terms of Use supplement the Small Business Website Terms of
Service at: http://smallbusiness.intuit.com/small-business/legal/index.jsp?_requestid=178246.
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