The CBIZ Small Business Employment Index (SBEI), a barometer for hiring trends surveying labor data from more than 4,000 companies employing 300 or fewer people, revealed a 1.61 percent month-over-month decrease in small business hiring in October. This reading is the fourth consecutive negative reading for the index and exceeds the average dip in hiring for the month of October. The September SBEI saw a decrease of 0.23 percent.
“Historically, October hiring has shown a decline among small businesses; however, this October is well below the seasonal average of the past five years,” said Philip Noftsinger, president of CBIZ Employee Services Organization, in a press release. “This month’s reading indicates a shift away from sustaining headcounts as we move into the holiday season, and with such a dramatic shift underway, other macroeconomic metrics will play a major role in the Fed’s decision to potentially hike rates in December.”
Additional takeaways from the October SBEI include:
- In comparison with September, 20 percent of companies included in the index increased headcounts, 50 percent made no change and 30 percent decreased their staff count. Although typically a negative month for small business hiring on a non-seasonally adjusted basis, this reading is well below the average for October of a 0.41 percent decrease.
- Industry segments that showed growth in October included educational services and insurance. Meanwhile, agriculture, arts and entertainment, real estate, retail, accommodation, food services and professional services recorded declines of greater than 1 percent for the month.
- The West region was the only area of the country showing positive employment gains among small businesses. The Central, Northeast and Southeast regions reported strong declines, all of which were more than 1.5 percent.