Small business employment grew by 0.09 percent in June, equating to a 1.1 percent annual growth rate, according to the latest Small Business Employment Index by Intuit Inc.
The growth in percentage of small business employment translates to approximately 18,000 new jobs in June and a revised estimate of 330,000 total new jobs since October 2009. The employment index reflects data from approximately 57,000 small-business employers that use Intuit Online Payroll.
“Employment rose, but the rise was at a slower rate for June than for previous months,” said Dr. Susan Woodward, an economist who worked with Intuit to create the index. “At this point in a recovery, the labor market is still sufficiently slack so small businesses should be hiring vigorously. They are hiring, but not as fast as in the first quarter.”
The data also shows a continued increase in compensation per worker. Compensation grew by 0.3 percent in June and is now $2,577 per month, compared with a revised estimate of $2,570 per month in May.
Monthly hours worked increased by 0.05 percent in June to 103.5 hours, compared with a revised estimate of 103.4 hours in May. This translates to wages of about $30,900 per year for all employees and a 23.5-hour week for hourly employees.
“Hours worked per employee continue to rise, but at a slower rate than we would like,” Woodward said. “On the bright side, monthly compensation per employee continues to rise at about the same rate as for the last five months. We do not see the same slowing in compensation as in employment or hours worked.”
About the index:
The Intuit Small Business Employment Index is based on aggregate and anonymous online employment data from small-business employers with fewer than 20 employees. These small businesses use Intuit Online Payroll. These smallest employers are important to the economy as they comprise 87 percent of the total U.S. private employer base and employ nearly 20 million people.
Intuit reports data for three categories: small business employment, compensation, and hours worked. The index data reflects monthly employment activity in small businesses, and is adjusted to account for changes in Intuit’s Online Payroll customer base. The percent change is measured monthly using the change in employment for existing Intuit Online Payroll customers from one month to the next. The set of customers changes each month so the measurement is the change, for each pair of months, for customers who are present in both the earlier and the later month.