Small business employment recovering after dip in 2015
Small business employment saw a boost in January according to an independent index which keeps track of the numbers every month.
The Paychex | IHS Small Business Jobs Index reported a 0.28 percent increase this month over December bringing it to 100.65 nationally. The number represents the “health” of small business employment compared to baseline numbers set in 2004. An index above 100 shows improvement since the pre-recession economy and below 100 signifies a decline.
Researchers say these findings indicate an increase in the rate which small businesses are hiring. This is the highest the index has been since May 2015 “offsetting the growth rate declines of late 2015.” Overall, they say the trend has remained neutral as the growth this month offsets those declines.
The Paychex | IHS Small Business Jobs Index is compiled by the human resources and payroll company Paychex and business analytics firm IHS. By using the information provided to them by their customers, Paychex is able compile information based on how small-business are hiring and expanding. The payroll company says they pool their information from 350,000 businesses that have less than 50 employees.
The Philadelphia Metro Area ranks 15th with an index of 100.10 though its trend has climbing upward since January 2015. The Mid-Atlantic region as a whole saw the second biggest increase over the last year.
These kind of indices can sometimes be confusing and do not always show a full picture of the status of small business in the country. But they can give an idea of trends in small business hiring. According to the U.S. Small Business Administration, these companies represent 99.7 percent of all employer firms and 48.4 percent of the private sector workforce.