CBIZ’s Employment Index Shows Small Business Hiring Still Scarce

CLEVELAND--(EON: Enhanced Online News)--The September CBIZ Small Business Employment Index, a barometer for hiring trends among companies with 300 or fewer employees, further decreased by .81 percent through the month, after posting a decrease of .36 percent in August.

Today’s announcement follows ADP’s September jobs survey which illustrated that the private sector added 91,000 jobs in September, slightly higher than the revised 89,000 jobs added in August. Furthermore, the September figure surpassed analysts’ estimates of 75,000 new jobs.

Philip Noftsinger, business unit president for CBIZ Payroll Services, explains, “As we reported last month, consumer demand and the overall economic malaise that permeates most of what Americans are seeing and hearing are the primary contributing factors around the lack of employment growth. Until confidence rises among small business owners and consumers, results like September’s are likely to continue into the foreseeable future.”

Additional take-away points from the September data set include:

At a glance: Of the companies that were surveyed, the data shows that 26 percent reported a decrease in employee headcount while 26 percent increased staffing. 48 percent of the companies involved in the survey maintained their number of employees.

Small business sector: For the third month in a row, hiring in the small business sector trended slightly downward. Low consumer demand and slow economic growth are causing hesitant business owners to think twice about hiring new employees.

What to watch: Keep an eye on consumer spending in the fourth quarter as the holiday season begins to pick up. Ongoing global economic concerns and recession fears may keep consumer spending to a minimum in the coming months.

“As we enter the fourth quarter it will be interesting to see if traditional holiday season demand can outweigh a conservative consumer, and lead to increased employment numbers. Today both forces appear to be in equal balance resulting in a neutral state. Hopefully the added pressure of what is historically a high selling season for retailers will provide enough pressure to create some movement in terms of consumer demand,” says Noftsinger.

Currently, CBIZ Payroll Services manages payroll services for more than 3,000 businesses that employ fewer than 300 people. The sample reflects a broad array of industries and geographies corresponding to the markets across the United States where CBIZ provides services.

For a month-by-month illustration of the Small Business Employment Index, please click here.

Editor’s note: The United States Department of Labor’s Bureau of Labor Statistics Employment Situation Summary is due to be released on Friday, October 7, 2011 at 8:30 a.m. Mr. Noftsinger is available for media interviews to discuss employment trends and other payroll matters impacting the American business environment.

About CBIZ, Inc. (NYSE:CBZ)

CBIZ, Inc. provides professional business services that help clients better manage their finances and employees. CBIZ provides its clients with financial services including accounting and tax, internal audit, merger and acquisition advisory and valuation services. Employee services include group benefits, property and casualty insurance, retirement planning, payroll, HR consulting and wealth management. CBIZ also provides outsourced technology staffing support services, healthcare consulting and medical practice management. As one of the largest benefits specialists and one of the largest accounting, valuation and medical practice management companies in the United States, the company’s services are provided through more than 150 offices in 36 states.