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Small Business Employment Shows Largest Increase In More than a Year
Hours Worked, Compensation and Revenue Up in April
MOUNTAIN VIEW, Calif. – Jun. 03, 2014 – U.S. small businesses added 35,000 jobs in May, the largest monthly increase in more than a year. This month's increase is triple the average of 12,000 new jobs per month that have been added since the small business recovery began in April 2010. In addition, employees worked longer hours and made more money during the month. Small businesses also made more money in April, with overall revenue per business across all industries increasing by nearly a quarter of one percent.
- Small businesses added 35,000 jobs, which brings total jobs added to 575,000 since March 2010, the beginning of the recovery in small business employment.
- Employees' average monthly compensation grew 0.6 percent, an increase of $17 from April's revised figure.
- Average monthly hours worked by hourly employees increased from April to May by 0.8 percent, which equates to 48 minutes.
"This month's employment increase is the largest we've seen in more than a year. In addition to the impressive increase of jobs this month, the hiring rate is also at the highest level we've seen since early 2009," said Susan Woodward, the economist who works with Intuit to create the indexes.
"This increase in small business activity could be credited to the spike in homebuilding. Housing starts grew from 947,000 units in March to 1,072,000 units in April, an increase of about 13 percent."
The Intuit Small Business Employment Index shows an increase of 0.17 percent in May. The Employment Index reflects data from approximately 231,000 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.
Hours Worked, Compensation Both Rise
Hourly small business employees worked an average of 112.3 hours in May, a rise of roughly 0.8 percent, or 48 minutes, translating to a 25.9-hour work week.
Small Business Employee Monthly Hours Worked for hourly employees increased by 0.8 percent in May. The levels reflect data from approximately 664,000 hourly employees of the Intuit Online Payroll and QuickBooks Online Payroll customer set of approximately 231,000 small businesses and is not necessarily representative of all small businesses. The month-to-month changes are seasonally adjusted and informative of the overall economy.
Average monthly pay for small business employees increased by 0.6 percent, rising $17 to $2,804 in May. The equivalent yearly wages would be approximately $33,600. The hourly wage remained unchanged at $15.90 for the fourth consecutive month. While hourly wages remained constant, employees made more money by working longer hours.
Small Business Employee Monthly Compensation for all employees increased by 0.6 percent in May. This data includes the compensation paid by small business owners to themselves. The levels reflect data from approximately one million employees of the Intuit Online Payroll and QuickBooks Online Payroll customer set of 231,000 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.
Geographic Growth Uniform
Small businesses across the nation continue to show growth. Among the 39 states that Intuit tracks, only Michigan saw a decline in small business employment. Nevada reported the highest increase in employment at 0.5 percent, followed by Hawaii and Oregon at 0.4 percent, with Alabama, California, Idaho, Mississippi, Texas and Utah at 0.3 percent.
Small Business Employment results were mostly 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 Increases Overall
The April Revenue Index showed small business revenue overall rose by nearly a quarter of one percent. Professional services led the way, with smaller gains in the accommodations, construction and other industries categories.
The real estate industry showed the largest revenue decline at 0.3 percent, followed by the health care sector, which dropped by .01 percent, and the retail industry which showed a decline of 0.19 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 approximately 231,000 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 8,000 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.