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Small Business Employment Sees Highest Growth Since January 2012
Revenues Continue to Decline Across Industries
MOUNTAIN VIEW, Calif. – Jun. 04, 2013 – American small business employment gained 35,000 news jobs in May, while compensation remained stagnant and hours worked decreased. Small business revenues continued to drop in April, with the real estate industry seeing the biggest decline for the month at 1.5 percent.
- Employment rose by 0.18 percent in May, for an annualized growth rate of 2.1 percent.
- Average monthly compensation showed no growth in May, remaining steady at the April revised estimate of $2,696.
- Average monthly hours worked by hourly employees fell by 0.12 percent in May, which is equivalent to a decrease of six minutes from April's figure of 106.8 hours.
"The small business economic picture remains conflicted," said Susan Woodward, the economist who worked with Intuit to create the indexes. "While May's small business employment figures are the best we have seen since January 2012, small business revenues have continued to decline month over month on a per-business basis."
"Among the industries tracked, small business retail revenues have been hit the hardest this past quarter, followed by small business healthcare, which has seen the biggest revenue decline over the past year. The silver lining continues to be the construction sector, which is the only one to see year-over-year revenue growth on a per-business basis. The good news is the hiring rate, which has been essentially flat since mid-2009, has picked up slightly."
The Intuit Small Business Employment Index shows a 0.18 percent increase in employment for May. The Employment Index reflects data from approximately 191,000 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, No Growth in Compensation
Small business hourly employees worked an average of 106.7 hours in May, making for a 24.6-hour work week. The decline of average monthly hours worked from April to May is consistent with the downward trend that began in mid-2011.
Small Business Employee Monthly Hours Worked for hourly employees decreased by 0.12 percent in May. The levels reflect data from approximately 530,000 hourly employees of the Intuit Online Payroll and QuickBooks Online Payroll customer set of approximately 191,000 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 held steady from April to May at $2,696, slightly higher than the revised March figure of $2,685 per month. The equivalent yearly wages would be about $32,300, which is considered part-time work for almost two-thirds of small business employees in Intuit's data.
Small Business Employee Monthly Compensation for all employees shows compensation remained the same in May. This data includes the compensation paid by small business owners to themselves. The levels reflect data from approximately 870,000 employees of the Intuit Online Payroll and QuickBooks Online Payroll customer set of 191,000 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 Split by Geography
Of the 36 states tracked by Intuit's Small Business Employment Index, 16 saw small business employment growth in May, while 19 saw declines and one remained flat.
Utah and Virginia saw the largest employment increases in May, with 0.3 percent and 0.11 percent respectively. Illinois and Wisconsin showed the greatest declines, at 0.1 percent each, while Georgia remained flat.
|State||Change in Employment (%)|
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.
April Small Business Revenue Sees Overall Decline
The April revenue index showed a 0.6 percent drop in overall small business revenue on a per-business basis.
The real estate industry saw the greatest revenue decline in April, at 1.5 percent, while the retail industry followed with a 0.8 percent drop. Construction revenues declined the least in April, at 0.4 percent. This index is based on data from QuickBooks Online, covering the period from April 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 180,000 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. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.
Founded in 1983, Intuit had annual revenue of $4.15 billion in its fiscal year 2012. The company has approximately 8,500 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.