Small Business Employment Remained Flat in August
Construction Only Sector to See Revenue Growth
MOUNTAIN VIEW, Calif. -- September 4, 2013
U.S. small business employment dropped very slightly in August, despite
increased compensation and hours worked for their employees. Small business
revenues overall declined 0.18 percent in July; the construction industry was
the only sector to show an increase, of 0.3 percent.
Those are among the findings of the monthly Intuit Inc. (Nasdaq: INTU) Small
Business Employment and Revenue Indexes. The report found that:
*Employment dropped 0.01 percent in August.
*Average monthly compensation increased 0.4 percent in August, with average
monthly pay reaching the equivalent of $2,751, up $10 from July.
*Average monthly hours worked by hourly employees increased 0.6 percent in
August, which is equivalent to 111.2 hours, up 42 minutes from July.
This employment index is based on data from Intuit Online Payroll and
QuickBooks Online Payroll, covering the period from July 24 through Aug. 23.
“The slight drop of one-hundredth of 1 percent in August employment equates to
about 1,300 jobs lost, which means employment was essentially flat for the
month. This is the second month that small business recovery has been flat or
falling,” said Susan Woodward, the economist who worked with Intuit to create
the indexes. “Small business employment continues to lag behind total private
employment, which has risen 7 percent since the trough in March 2010, while
small business employment has only risen by 2 percent.”
“Revenue per small business has continued to decline overall and for all
industry sectors except construction. The healthcare, retail and real estate
services industries show the largest declines. Real estate services saw the
greatest decline at a per-business level in July, as many Realtors who were
inactive are now re-entering the market, competing for existing business. The
healthcare industry has experienced the second largest – and the longest –
overall revenue decline, at 3.2 percent since mid-2012. Construction continues
to be the bright spot in small business revenues, up 21 percent from the dip
Increased Hours Worked, Compensation
Small business hourly employees worked an average of 111.2 hours in August,
which is a 42-minute increase from July’s figure of 110.5 hours, making for a
25.7-hour work week.
Average monthly pay for small business employees increased to $2,751 in
August, up from $2,741 in July. The equivalent yearly wages would be about
Small Business Employment Changes Not Uniform Geographically
Of the 37 states tracked by Intuit’s Small Business Employment Index, 29
showed employment gains, while six saw declines and two remained flat.
Minnesota and Wisconsin both saw the greatest employment gains, at 0.3
percent; conversely Nevada saw the greatest decline at 0.15 percent.
The census divisions of Northern Prairies and Great Lakes saw the most growth
in small business employment.
New Jersey 0.09
New Mexico -0.02
New York 0.03
North Carolina 0
South Carolina 0.08
Small Business Employment results were primarily positive 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, Trend Continues
The July revenue index showed a 0.18 percent drop in overall small business
revenue on a per-business basis.
Three industries, real estate, retail and healthcare, showed the largest
per-business revenue declines for the month, at 0.5 percent each.
Construction was the only industry to see an increase, at 0.3 percent. This
index is based on data from QuickBooks Online, covering the period from July
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 approximately 200,000 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.creates business and financial management solutions that simplify
the business of life for small businesses, consumers and accounting
Its flagship products and services includeQuickBooks®,Quicken®
andTurboTax®, which make it easier to manage small businessesandpayroll
processing,personal finance, andtax preparation and filing.Mint.com
provides a fresh, easy and intelligent way for people to manage their money,
while Demandforce® offers marketing and communication tools for small
businesses. ProSeries® andLacerte® are Intuit's leading tax preparation
offerings for professional accountants.
Founded in 1983, Intuit had revenue of $4.2 billion in its fiscal year 2013.
The company has approximately 8,200 employees with major offices in theUnited
States, Canada, theUnited Kingdom,Indiaand other locations. More
information can be found atwww.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
Press spacebar to pause and continue. Press esc to stop.