MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–
U.S. small business employment dropped very slightly in August, despite
increased compensation and hours worked for their employees. Small
business revenues overall declined 0.18 percent in July; the
construction industry was the only sector to show an increase, of 0.3
percent.
Those are among the findings of the monthly Intuit
Inc. (INTU) Small
Business Employment and Revenue Indexes. The report found that:
- Employment dropped 0.01 percent in August.
-
Average monthly compensation increased 0.4 percent in August, with
average monthly pay reaching the equivalent of $2,751, up $10 from
July. -
Average monthly hours worked by hourly employees increased 0.6 percent
in August, which is equivalent to 111.2 hours, up 42 minutes from July.
This employment index is based on data from Intuit
Online Payroll and QuickBooks
Online Payroll, covering the period from July 24 through Aug. 23.
“The slight drop of one-hundredth of 1 percent in August employment
equates to about 1,300 jobs lost, which means employment was essentially
flat for the month. This is the second month that small business
recovery has been flat or falling,” said Susan
Woodward, the economist who worked with Intuit to create the
indexes. “Small business employment continues to lag behind total
private employment, which has risen 7 percent since the trough in March
2010, while small business employment has only risen by 2 percent.”
“Revenue per small business has continued to decline overall and for all
industry sectors except construction. The healthcare, retail and real
estate services industries show the largest declines. Real estate
services saw the greatest decline at a per-business level in July, as
many Realtors who were inactive are now re-entering the market,
competing for existing business. The healthcare industry has experienced
the second largest – and the longest – overall revenue decline, at 3.2
percent since mid-2012. Construction continues to be the bright spot in
small business revenues, up 21 percent from the dip in mid-2010.”
Increased Hours Worked, Compensation
Small business hourly employees worked an average of 111.2 hours in
August, which is a 42-minute increase from July’s figure of 110.5 hours,
making for a 25.7-hour work week.
Average monthly pay for small business employees increased to $2,751 in
August, up from $2,741 in July. The equivalent yearly wages would be
about $33,000.
Small Business Employment Changes Not Uniform Geographically
Of the 37 states tracked by Intuit’s Small Business Employment Index, 29
showed employment gains, while six saw declines and two remained flat.
Minnesota and Wisconsin both saw the greatest employment gains, at 0.3
percent; conversely Nevada saw the greatest decline at 0.15 percent.
The census divisions of Northern Prairies and Great Lakes saw the most
growth in small business employment.
State
Change
Alabama
0.03
Arizona
0.07
Arkansas
0.02
California
0.01
Colorado
0.06
Connecticut
0.11
Florida
0.1
Georgia
0.19
Idaho
0.11
Illinois
0
Indiana
0.12
Iowa
0.13
Kansas
0.1
Kentucky
-0.06
Louisiana
0.01
Maryland
0.08
Massachusetts
0.12
Michigan
0.13
Minnesota
0.3
Mississippi
0.09
Missouri
0.09
Nevada
-0.15
New Jersey
0.09
New Mexico
-0.02
New York
0.03
North Carolina
0
Ohio
0.16
Oklahoma
-0.05
Oregon
0.08
Pennsylvania
-0.01
South Carolina
0.08
Tennessee
0.01
Texas
0.05
Utah
0.01
Virginia
-0.03
Washington
0.15
Wisconsin
0.3
Small Business Employment results were primarily 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 Decline, Trend Continues
The July revenue index showed a 0.18 percent drop in overall small
business revenue on a per-business basis.
Three industries, real estate, retail and healthcare, showed the largest
per-business revenue declines for the month, at 0.5 percent each.
Construction was the only industry to see an increase, at 0.3 percent.
This index is based on data from QuickBooks
Online, covering the period from July 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 8,200 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.”
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Service at: http://smallbusiness.intuit.com/small-business/legal/index.jsp?_requestid=178246.
