CBIZ is reporting solid gains in small business employment in the month of June among the small businesses using its payroll service.
Of the companies surveyed, the data shows that 29 percent reported an increase in employee headcount, while 20 percent decreased their staffing. Fifty-one percent of the companies involved in the survey maintained their number of employees.
The CBIZ Small Business Employment Index increased by 1.38 percent in June, following an increase of 1.34 percent in May. The index’s gain reflects a continued strengthening in growth in small business employment and contrasts with recent weakening reports from the private sector.
“The SBEI for June 2012 continues to show solid growth in employment by businesses with fewer than 300 employees,” said CBIZ Payroll Services business unit president Philip Noftsinger in a statement. “This runs counter to many of the other employment metrics that are showing stagnation or modest decline. This month’s positive number represents three months in a row of positive employment growth in this sector.”
The domestic economy has been stable through the first two quarters of 2012, CBIZ noted, so it is likely that many of small employers are benefiting from a steady domestic situation as well as the summer travel season. Concerns that might disrupt this trend are this week’s poor manufacturing data and another global slowdown precipitated by the ongoing European debt crisis.
“We will also continue to watch for any impacts related to the looming tax increases scheduled to change on Jan. 1, 2013,” said Noftsinger. “With the Supreme Court ruling that the Patient Protection and Affordable Care Act remains in-force, small business owners have a clearer picture of what to expect. The more predictable the business environment, the more likely business owners will invest.”
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