Small Business Employment Takes Another Step Forward
More Than 90,000 Jobs Added Over Past Six Months
MOUNTAIN VIEW, Calif. -- July 30, 2014
U.S. small businesses added 15,000 jobs in July, bringing the number of new
jobs added over the last six months to more than 90,000. While 610,000 jobs
have been added since the small business recovery began in March 2010, small
business employment remains 870,000 jobs below its peak in March 2007.
These are among the findings of the monthly Intuit Inc. (Nasdaq:INTU) Small
Business Employment and Revenue Indexes. The July figures revealed:
*The 15,000 new jobs more than doubles the average number of 7,000 jobs
added each month between July 2013 and January 2014.
*Employees’ average monthly compensation declined 0.2 percent, a drop of $6
from June’s revised figure.
*Average monthly hours worked by hourly employees decreased from June to
July by 0.3 percent, which equates to a total of 18 minutes.
The employment index is based on data from Intuit Online Payroll and
QuickBooks Online Payroll, covering the period from June 24 through July 23.
“This month’s employment increase shows additional progress,” said Susan
Woodward, the economist who works with Intuit to create the indexes. “Things
continue to get better, but slowly. The jobs added by small business over the
most recent six months, including July, are more than double what we saw over
the prior six months. Even this rate of increase is slow. Even if small
business adds 15,000 jobs a month for a year, small business employment would
grow by slightly less than one percent. The job growth for the economy overall
for the past year was 1.8 percent. The soft spot in the overall recovery, and
particularly for small business, is construction.
“Construction makes up about 5 percent of the overall economy,” Woodward said,
“but accounts for about 20 percent of small business. New single family
housing starts have averaged 950,000 a year since the beginning of 2013, far
below the 1.5 million average seen from 1992 to 2008. This past month, new
housing starts fell by 92,000 units to 893,000, seasonally adjusted.”
Hours Worked, Pay Declines Slightly
Hourly small business employees worked an average of 107.2 hours in July, a
decline of roughly 0.3 percent, or 18 minutes, translating to a 24.7-hour work
Average monthly pay for small business employees decreased by 0.2 percent,
falling $6 from last month for a total of, $2,708 in July. The equivalent
yearly wages would be approximately $32,500. The hourly wage rose just
slightly, by 4 cents, reaching $16 for the first time.
Uneven Employment Growth by State
The increase in small business employment was not even across the country.
Among the 40 states that Intuit tracks, 29 showed growth while 11 states saw
declines. Idaho and Utah reported the highest increase, at 0.4 percent; for
the third consecutive month, Michigan saw the greatest decline in small
business employment. While most states saw an increase, employment trends were
soft in the Great Lakes and New England regions.
South Carolina 0.17
North Carolina 0.15
New Mexico 0.14
New Jersey 0.04
New York -0.02
New Hampshire -0.04
Small Business Employment results were mostly 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 Slightly Declines
Small business revenue declined by .01 percent in June, which would represent
an annualized decline of 0.14 percent over an entire year.
The health care services sector reported the largest decline, where revenues
fell 0.18 percent in June. The real estate services businesses saw the largest
increase at 0.4 percent the retail, accommodations and constructions
industries categories reported larger gains.
This index is based on data from QuickBooks Online, covering the period from
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 237,000 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 8,000 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
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