The latest Intuit Small Business Employment Index showed slight employment growth in April 2014, reversing a three-month trend of slow to no growth. Meanwhile, the Intuit Small Business Revenue Index showed that overall small business revenue declined by 0.7 percent in March 2014.
Below are highlights from the latest indexes. To download the full reports or see past data, please visit index.intuit.com.
April 2014 Employment Index
- 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 per month.
“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.”
Geographically speaking, the April increase in small business hiring, though minimal, 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.
This iteration of the employment index is based on anonymized data from approximately 225,000 small businesses, a subset of total Intuit Online Payroll and QuickBooks Online Payroll users. It covers the period from March 24 through April 23.
- On a per-business basis, small business revenues saw an overall decline of 0.7 percent in March.
- Of the industries tracked by the revenue index, 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 of which fell 0.5 percent