The CBIZ Small Business Employment Index (SBEI), showing small business hiring trends, rose a mere 0.5 percent in April 2012 on the tail of a 1.66 percent increase in March. The marginal growth is blamed on predictions of a sluggish economy and flagging private sector job growth. ADP recently reported that the private sector added just 119,000 jobs in April, coming in below estimates.
Highlights from the data include:
- One quarter of employers experienced a staffing decrease during April while 22 percent reported an increase. A further 53 percent of companies reported that their employment numbers remained the same.
- Bureau of Labor Statistics data show that the deceleration of small business hiring is in step with the slowing job trends at all levels.
What this also translates to is a more strategic hiring practice. Individuals who lack experience or specific skills may not be considered for positions, as the employer would have to spend time training those employees. Small business owners are likely looking for new associates who can provide immediate productivity in the function that needs attention, said Philip Noftsinger, Business Unit President for CBIZ Payroll Services.
The focus on small businesses comes from the importance political and economic leaders place in the sector as the driving force of the economy and the fact that the sector is highly sensitive to changes in market demand.