Small Business Employment Continues Tepid Growth
Revenues Drop, Construction Revenues Increase
MOUNTAIN VIEW, Calif. -- April 2, 2013
U.S. small business employment increased slightly in March, with employees
earning more money and working more hours. Small business revenues continued
to drop in February, while the construction industry was the sole sector to
see an increase.
Those are among the findings of the monthly Intuit Inc. (Nasdaq: INTU) Small
Business Employment and Revenue Indexes. The report found that:
*Employment increased by 0.06 percent in March, adding 10,000 new jobs, for
an annualized growth rate of 0.7 percent. About 20 million people are now
employed in businesses with 1 to 19 employees.
*Average monthly compensation grew by 0.4 percent in March on a seasonally
adjusted basis, or $12, the same increase reported in February.
*Average monthly hours worked increased by 0.2 percent, or 18 minutes,
compared to the increase of 12 minutes reported in February.
This employment index is based on data from Intuit Online Payroll and
QuickBooks Online Payroll, covering the period from Feb. 24 through March 23.
“National employment is growing slowly, and small business employment is
growing even more slowly,” said Susan Woodward, the economist who worked with
Intuit to create the indexes. “While overall employment has risen 4.5 percent
in three years, small business employment has risen only 1.4 percent over the
same three years—an annual rise of half a percent per year.”
As small businesses slowly recover, Intuit and LinkedIn are hosting the Hire
Smart Small Business Event to help employers make the right decisions when
hiring workers. Hire Smart is a free event that will be held at Intuit’s
Mountain View, Calif. campus on April 27 and will be streamed live online. The
event will offer guest speakers, expert advisors, and free resources to assist
new and growing businesses. To register, visit: www.HireSmartNow.com.
Increase in Hours Worked, Compensation
Small business hourly employees worked an average of 108.3 hours in March, up
slightly from the revised figure of 108 hours in February, making for a
25-hour work week.
Average monthly pay for small business employees increased to $2,741 in March,
up 0.4 percent from the February revised figure of $2,729 per month. The
equivalent yearly wages would be about $32,900 per year, which is part-time
work for almost half of small business employees.
Small Business Employment by Geography
A state-by-state breakdown of employment growth showed most states saw
increases in March. Among the 34 states tracked by Intuit’s Small Business
Employment Index, employment increased in 24, remained flat in one and
declined in nine. Continuing a trend seen in the February findings, Nevada saw
the largest increase. Alabama, Wisconsin and Illinois showed the greatest
State Change in Employment (%)
New Jersey 0.12
New York -0.01
North Carolina 0.18
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.
February Small Business Revenue Decline
The February Small Business Revenue Index showed a 0.6 percent overall revenue
decline on a per business basis.
“The only two industry sectors where average revenue rose over the last year
and last month are the construction and real estate services industries. They
both benefit from the small but clear recovery in construction,” said
The retail and professional services industries saw the greatest revenue
declines in February, at 0.9 percent each. Health care revenues declined the
least in February, at 0.13 percent. This index is based on data from
QuickBooks Online, covering the period from Feb. 1-28.
Sector February Change in Revenue (%)
Retail trade -0.9
Professional, scientific, and technical -0.9
Real estate and rental and leasing -0.8
Health care and social assistance -0.13
Accommodation, food services, and drinking -0.5
Other sectors -0.2
The Intuit Small Business Revenue Index is based on data from more than
150,000 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, non-identifiable aggregated data from 180,000 small business
employers, a subset of users that use Intuit Online Payroll and QuickBooks
Online Payroll. The Revenue Index is based on anonymized, non-identifiable
aggregated data from approximately 150,000 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
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.
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. The 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
Small BusinessWebsite Terms of Service at:
Tammy Lam, 650-944-3807
Stephen Imm, 415-844-6286
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