Intuit Sees Small Business Employment Decline in July

Employment at small businesses in the U.S. declined by 10,000 jobs in July, while average compensation and hours worked also dropped, according to figures from Intuit.

The small business software developer also reported Monday that small business revenues saw an overall decline of 0.3 percent in June, with the exception of the construction industry, which recorded a 0.2 percent increase.

Those were among the findings of the monthly Intuit Inc. Small Business Employment and Revenue Indexes. The report found that employment dropped 0.05 percent in July. Average monthly compensation decreased 0.2 percent in July, with average monthly pay reaching the equivalent of $2,692, down $7 from $2,699 in June. The equivalent yearly wages would be about $32,300. Average monthly hours worked by hourly employees decreased by 0.3 percent in July, which is equivalent to 107.6 hours, down 18 minutes from June.

This employment index is based on data from Intuit Online Payroll and QuickBooks Online Payroll, covering the period from June 24 through July 23. The revenue index is based on data from QuickBooks Online, covering the period from June 1-30.

"The recovery for small business has been slower and more bumpy than for big business," said Susan Woodward, the economist who worked with Intuit to create the indexes. "Total employment has risen 5.1 percent from its bottom in January 2010, but employment for businesses with fewer than 20 employees has risen only 2 percent from its bottom in March 2010. Small business revenues have declined 2.5 percent on a per-business basis from their peak in November 2012. It's unclear why revenues are dropping across industries. But we can attribute the decline in revenues per business in the real estate sector partly to more real estate agents entering the market, taking business from existing agents."

Of the 36 states tracked by Intuit's Small Business Employment Index, 22 showed employment gains, while 13 saw declines and one remained flat. Missouri saw the greatest employment gain, at 0.12 percent, while Oklahoma saw the greatest decline at 0.07 percent. By census divisions, the Pacific region, which includes California, saw a decline of 0.01 percent. The rest of the divisions saw gains, with the exception of the South Atlantic, which remained flat.

State

Change

Alabama

0.02

Arizona

0.08

Arkansas

-0.06

California

-0.03

Colorado

0.03

Connecticut

0.04

Florida

0.02

Georgia

0.01

Idaho

0.07

Illinois

0.02

Indiana

0.01

Iowa

0.09

Kansas

-0.01

Kentucky

-0.05

Louisiana

0

Maryland

0.06

Massachusetts

0.08

Michigan

0.03

Minnesota

-0.04

Missouri

0.12

Nevada

-0.03

New Jersey

0.07

New Mexico

-0.02

New York

0.01

North Carolina

-0.05

Ohio

0.05

Oklahoma

-0.07

Oregon

0.01

Pennsylvania

-0.03

South Carolina

-0.03

Tennessee

-0.01

Texas

0.03

Utah

-0.04

Virginia

0.03

Washington

0.02

Wisconsin

0.03

The June revenue index showed a 0.3 percent drop in overall small business revenue on a per-business basis. The accommodation and food services sector led the decline among industries tracked, falling 0.6 percent. The retail industry followed with a 0.4 percent drop. Conversely, construction increased by 0.2 percent.

[IMGCAP(1)]

For reprint and licensing requests for this article, click here.
Payroll
MORE FROM ACCOUNTING TODAY