Small Business Employment Increases, but Revenue Falls for Eighth Consecutive Month

  Small Business Employment Increases, but Revenue Falls for Eighth
  Consecutive Month

       Real Estate, Health Care Industries See Biggest Revenue Declines

Business Wire

MOUNTAIN VIEW, Calif. -- December 03, 2012

U.S. small business employment saw an increase of 30,000 jobs in November,
while hours worked and compensation also rose. Small business revenue fell 0.3
percent in October, continuing a decline that began in February.

These are among the results for the monthly Intuit Inc. (Nasdaq: INTU) Small
Business Employment and Revenue Indexes, which together provide a current
picture of the economic health of the nation’s small businesses.

The Small Business Employment Index indicates that employment rose by 0.14
percent in November, equating to an annualized growth rate of 1.7 percent.
Average monthly compensation grew by 0.5 percent, or $14. Average monthly
hours worked increased by 0.11 percent, or six minutes. The index is based on
data from Intuit Online Payroll and QuickBooks Online Payroll, covering the
period from January 2007 through Nov. 23.

“The results are definitely mixed for small businesses,” said Susan Woodward,
the economist who worked with Intuit to create the indexes. “We began seeing
some employment gains in April 2010, but between March and September 2012, the
numbers began to drop again. The good news is they are back up for October and
November.”

Increase in Hours Worked, Compensation

Small business hourly employees worked an average of 110.1 hours in November,
up slightly from the revised figure of 110 hours in October, making for a
25.4-hour workweek.

Average monthly pay for small business employees rose to $2,861 in November,
up 0.5 percent from the October revised figure of $2,847 per month. This
equates to an increase of $14, up from the decrease of $3 seen from September
to October. The equivalent annual wages would be about $34,300 per year, which
is part-time work for many small business employees.

Small Business Employment by Geography

The Employment Index showed growth in all U.S. census divisions, except the
West North Central, East North Central and New England regions, where the
number of jobs declined. A breakdown of states tracked by the index showed the
largest employment increases in Maryland and Utah, while Michigan and Kansas
saw the largest decreases.

                        
U.S. Census Division     Percent Change in Employment
East North Central       - 0.05%
West North Central       - 0.02%
Middle Atlantic          + 0.01%
Mountain                 + 0.07%
New England              - 0.1%
Pacific                  + 0.04%
South Atlantic           + 0.01%
East South Central       + 0.03%
West South Central       + 0.06%

Small Business Employment by U.S. Census Division saw growth in most parts of
the country. The data reflects employment from approximately 170,000 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.

                  
                   Change in Employment
State              (%)
Alabama            0.06
Arizona            0.11
California         0.05
Colorado           0.09
Connecticut        -0.11
Florida            0.02
Georgia            0.02
Illinois           -0.01
Indiana            0.06
Iowa               -0.03
Kansas             -0.16
Kentucky           0.03
Louisiana          -0.11
Maryland           0.15
Massachusetts      -0.11
Michigan           -0.19
Minnesota          -0.02
Missouri           0.12
Nevada             0.04
New Jersey         -0.08
New York           0.01
North Carolina     -0.03
Ohio               -0.09
Oklahoma           0.12
Oregon             -0.02
Pennsylvania       0.06
South Carolina     0.08
Tennessee          0
Texas              0.08
Utah               0.13
Virginia           -0.11
Washington         0.02
Wisconsin          -0.07

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.

Small Business Revenue Index

The October Small Business Revenue Index shows a 0.3 percent decline from the
previous month. The real estate and health care industries saw the biggest
drop-offs, at 0.9 and 0.7 percent respectively. Professional services followed
with a decline of 0.6 percent. The index is based on data from QuickBooks
Online and covers the period from January 2005 through Oct. 31.

“The decline in small business revenue is disheartening, and appears to be
happening despite a rise in single-family construction and existing home
sales,” said Woodward. “There has also been a 4.4 percent increase in the
number of people who are self-employed since November 2011. That brings new
entrants to compete with incumbents and may explain the steady decrease in
revenue per small business.”

                                                     
                                                      October Change in
Sector                                                Revenue (%)
All                                                   -0.3
Real estate and rental and leasing                    -0.9
Health care and social assistance                     -0.7
Other services                                        -0.6
Professional, scientific, and technical services      -0.6
Accommodation, food services, and drinking places     -0.5
Retail trade                                          -0.5
Construction                                          -0.4

The Intuit Small Business Revenue Index is based on data from more than
100,000 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, aggregated data from 170,000 small business employers, a subset of
users that use Intuit Online Payroll and QuickBooks Online Payroll. The
Revenue Index is based on anonymized, aggregated data from approximately
100,000 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 8,000 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.

Intuit and the Intuit logo, among others, are registered trademarks and/or
registered service marks of Intuit Inc. in the United States and other
countries. Intuit Small Business Payroll Index is copyrighted by Intuit. Its
contents may not be resold or modified in any way. It can be linked to and
referenced with the following attribution: “Intuit Small Business Employment
Index © Intuit Inc. All rights reserved.” These Terms of Use supplement the
Small BusinessWebsite Terms of Service at:
http://smallbusiness.intuit.com/small-business/legal/index.jsp?_requestid=178246.

Contact:

Intuit Inc.
Tammy Lam, 650-944-3807
tammy_lam@intuit.com
or
Access Communications
Stephen Imm, 415-844-6286
simm@accesspr.com
 
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