This June, U.S. small businesses continued an upward trend in employment growth, adding 24,000 new jobs. Compensation and hours worked by small business employees also increased, according to the Intuit Small Business Employment and Revenue Indexes. The change in small business employment translates to 405,000 jobs added since March 2010.
Increase in Hours Worked and Compensation
According to Susan Woodward, the economist who worked with Intuit to create the indexes, “The gains in small business employment this month are not as large as last month. However, this month’s gains, paired with the upward revisions for the previous several months, add up to the biggest gains we have seen in small business employment since the recovery began.”
- Small business hourly employees worked an average of 108.9 hours in June, making for a 25.1-hour work week. This is an increase of 0.7 percent from May.
- Average monthly wages increased by 0.5 percent, to $2,721, in June. The equivalent annual wages would be about $32,600, which is considered part-time work for two-thirds of small business employees.
Geographic Changes Sporadic
The Intuit Small Business Employment Index tracks for employment changes in 36 states. In June, only 10 states showed employment gains, 25 saw declines, and one remained flat. The tri-state area of New York, Connecticut and New Jersey were among the 10 states that saw employment increases, at 0.05, 0.03, and 0.02 percent respectively. The state of New York saw the greatest employment gain, while Kansas saw the greatest decline at 0.16 percent.
Revenue Continues Overall Decline, Construction Is a Silver Lining
Per-company revenues were down for all sectors tracked by Intuit, except for construction. The May revenue index showed a 0.4 percent drop in overall small business revenue on a per-business basis. This is the second month that the real estate sector has seen the greatest revenue decline at 1.1 percent.
The index is based on data from 150,000 small businesses, a subset of QuickBooks Online users, covering the period from May 1 to May 31, 2013.
For more information and historical data on small business employment and revenue, visit index.intuit.com.