The CBIZ Small Business Employment Index reported a seasonally adjusted increase of 0.29% in April, marking the third consecutive month of hiring gains for small businesses. The CBIZ SBEI tracks payroll and hiring trends for over 3,000 companies that have 300 or fewer employees, providing broad insight into small business trends.
- National Employment Overview:
- The Bureau of Labor Statistics’ employment report indicated hiring growth that, despite growth, missed expectations.
- April reading showed an overall increase of 175,000 private-sector jobs, with a national unemployment rate rise to 3.9%.
- The ADP employment report indicated hiring growth among small, medium, and large-sized companies, with an overall increase of 192,000 private-sector jobs.
- Regional Hiring Trends:
- Northeast (0.63%), Central (0.53%), and Southeast (0.13%) regions experienced hiring increases.
- The West (-1.21%) was the only region to experience a decline.
- Industry Insights:
- Employment gains observed in Administrative and Support Services; Agriculture, Fishing and Hunting; and Arts, Entertainment and Recreation.
- Hiring decreases observed in Educational Services, Financial Services, and Utilities.
- April Snapshot and Outlook:
- 19% of companies increased staffing, 61% made no changes, and 20% reduced employment totals.
- April usually has fewer job gains historically, making this month’s results a positive change.
- Small businesses continue navigating the tight labor market while actively seeking skilled workers.
Despite slight variations in reports, April shows a positive trend in small business hiring. As industries and regions experience shifts, navigating the labor market remains a challenge, but opportunities for growth persist.
