Small Business Employment Increases, But Revenue Falls for Tenth Consecutive
Construction Only Sector to See Revenue Increase
MOUNTAIN VIEW, Calif. -- January 30, 2013
U.S. small business employment increased 0.11 percent in January, while
overall revenue dropped 0.4 percent in December, according to the monthly
Intuit Inc. (Nasdaq: INTU) Small Business Employment and Revenue Indexes.
Construction was the only sector to see an increase in revenue.
The January employment increase represents 20,000 new jobs added and an
annualized growth rate of 1.3 percent.
On a seasonally adjusted basis, average monthly compensation fell by 0.2
percent in January, or $6, compared to the increase of $13 seen in December.
Average monthly hours worked decreased by 0.9 percent, or almost one hour,
compared to the increase of five minutes seen last month. The index is based
on data from Intuit Online Payroll and QuickBooks Online Payroll, covering the
period from Dec. 24 through Jan. 23.
“The rate of small business employment continues its slow climb after a slight
dip from April through September 2012,” said Susan Woodward, the economist who
worked with Intuit to create the indexes. “However, the number of small
business jobs now stands at a little over 19.9 million – still below the peak
in April 2012, and well below its pre-recession level of 21.2 million jobs in
March 2007. Given the continuing high levels of unemployment, we can expect
little to no impact on small business wages and employment levels from the
return of the employee payroll tax to its previous level of 6.2 percent.
Instead, we will be much more likely to see a decline in the consumption
spending of employees, who will be taking home less money.”
Decrease in Hours Worked, Compensation
Small business hourly employees worked an average of 105.1 hours in January,
down slightly from the revised figure of 106.1 hours in December, making for a
Average monthly pay for small business employees dropped to $2,676 in January,
down 0.2 percent from the December revised figure of $2,682 per month. The
equivalent annual wages would be about $32,100 per year, which is part-time
work for almost half of small business employees.
Small Business Employment by Geography
A breakdown of employment growth by state showed mixed results for January.
Among the 33 states tracked by Intuit’s Small Business Employment Index, 11
showed employment increases, two remained flat, and 20 showed decreases. Utah
and Nevada saw the largest increases, while Michigan and Indiana saw the
State Change in Employment (%)
New Jersey -0.03
New York -0.05
North Carolina 0.13
South Carolina 0.11
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 Decline
The December Small Business Revenue Index showed a 0.4 percent revenue decline
on a per business basis. Construction was the sole industry to see an
increase, at 0.3 percent. The real estate and retail industries saw the
biggest drop-offs, at 0.8 percent each. This index is based on data from
QuickBooks Online and covers the period from Dec. 1 – 31.
For the entire year, the construction industry was the only one with increased
revenue, reporting a 3.1 percent rise, compared to a decline of 1.8 percent
for small businesses overall. The retail and healthcare sectors reported the
biggest decreases over the past year with a 5 percent and 3.8 percent decline
“The revenue decline that began in early 2012 coincides with a rise in self
employment,” said Woodward. “This increase of new entrants into existing
industries may explain the decline in revenue per business. There are now more
businesses competing for business in the same markets.”
Sector December Change in Revenue (%)
Real estate and rental and leasing -0.8
Retail trade -0.8
Health care and social assistance -0.6
Professional, scientific, and technical -0.6
Accommodation, food services, and drinking -0.6
Other services -0.3
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
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
Founded in 1983, Intuit had annual revenue of $4.15 billion in its fiscal year
2012. The company has approximately 8,500 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.
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contents may not be resold or modified in any way. It can be linked to and
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Tammy Lam, 650-944-3807
Stephen Imm, 415-844-6286
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