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Small Business Employment Declines in July
Construction Revenues Increase While Overall Revenues Decrease
MOUNTAIN VIEW, Calif. – Aug. 05, 2013 – U.S. small business employment declined by 10,000 jobs in July, while average compensation and hours worked also dropped. 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.
- 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 June.
- 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.
"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."
The Intuit Small Business Employment Index shows a 0.05 percent decrease in employment. The Employment Index reflects data from approximately 198,000 small business employers, a subset of small businesses that use Intuit Online Payroll and QuickBooks Online Payroll. The month-to-month changes are seasonally adjusted and informative about the overall economy. The National Employment Index is from the Bureau of Labor Statistics.
Decrease in Hours Worked, Compensation
Small business hourly employees worked an average of 107.6 hours in July, making for a 24.8-hour work week, down slightly from June's figure of 107.9 hours.
Small Business Employee Monthly Hours Worked for hourly employees decreased by 0.3 percent. The levels reflect data from approximately 557,000 hourly employees of the Intuit Online Payroll and QuickBooks Online Payroll customer set of approximately 198,000 small businesses and is not necessarily representative of all small businesses. The month-to-month changes are seasonally adjusted and informative about the overall economy.
Average monthly pay for small business employees decreased from $2,699 in June to $2,692 in July. The equivalent yearly wages would be about $32,300.
Small Business Employee Monthly Compensation for all employees decreased by 0.2 percent. This data includes the compensation paid by small business owners to themselves. The levels reflect data from approximately 906,000 employees of the Intuit Online Payroll and QuickBooks Online Payroll customer set of 198,000 small businesses, and are not necessarily representative of all small business employees. The month-to-month changes are seasonally adjusted and informative about the overall economy.
Small Business Employment Changes Slight and Sporadic
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.
Small Business Employment results were mixed 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 Continues Overall Decline
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. This index is based on data from QuickBooks Online, covering the period from June 1-30.
The Intuit Small Business Revenue Index is based on data from more than 150,000 small businesses, a subset of the total QuickBooks Online financial management user base.
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 and mid-sized 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 $4.15 billion in its fiscal year 2012. 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.