Small Business Employment Remained Flat in February
Compensation, Hours Worked Increased; Small Business Revenue Continued to Decline
MOUNTAIN VIEW, Calif. – Mar. 04, 2014 – U.S. small business employment remained stagnant in February, while average hours worked and monthly wages both increased. Overall, small business revenue declined 0.09 percent in January.
"By region, the Midwest and the East Coast saw the most employment declines, possibly due to the extreme winter," said Susan Woodward, the economist who works with Intuit to create the indexes. "While the changes in employment are mixed across states overall, total compensation and hours worked were up in all states except Idaho, a major skiing state which is suffering from a snowless winter, and New Jersey, whose changes were small."
The Intuit Small Business Employment Index shows a no increase in employment. The Employment Index reflects data from approximately 211,000 small business employers, a subset of small businesses that use Intuit Online Payroll and QuickBooks Online Payroll. The month-to-month changes are seasonally adjusted and informative about the overall economy.
Substantial Increase in Hours Worked, Compensation
Hourly small business employees worked an average of 108.5 hours in February, which translates to a 30-minute increase from January's figure of 108 hours, making for a 25-hour work week.
Small Business Employee Monthly Hours Worked for hourly employees increased by 0.5 percent in February. The levels reflect data from approximately 597,000 hourly employees of the Intuit Online Payroll and QuickBooks Online Payroll customer set of approximately 211,000 small businesses and is not necessarily representative of all small businesses. The month-to-month changes are seasonally adjusted and informative of the overall economy.
Average monthly pay for small business employees also grew significantly, rising $15 to $2,739 in February. The equivalent yearly wages would be about $32,900. This total includes wages that small business owners pay to themselves.
Small Business Employee Monthly Compensation for all employees increased by 0.5 percent in February. This data includes the compensation paid by small business owners to themselves. The levels reflect data from approximately 978,000 employees of the Intuit Online Payroll and QuickBooks Online Payroll customer set of 211,000 small businesses, and are not necessarily representative of all small business employees. The month-to-month changes are seasonally adjusted and informative about the overall economy.
Strong Regional Small Business Employment Growth
Small business employment increased in 11 of the 38 states tracked by Intuit's Small Business Employment Index. For the second consecutive month, Kentucky saw the largest employment increase, at 0.4 percent. Twenty-one states showed employment declines, while six remained flat. Missouri and Idaho recorded the largest declines, at 0.2 percent each.
Small Business Employment results were mixed 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 Continues Decline
The January Revenue Index showed overall small business revenue decreased 0.09 percent on a per-business basis. Half of the industries registered gains, while the other half reported declines. The biggest gains occurred in the construction and "other industries" sectors, the latter of which includes non-professional services such as auto repair and gardening services.
The real estate services industry showed the largest decline at 0.5 percent, followed by the accommodation and food services sector, which dropped 0.2 percent.
"The drop in real estate services revenue reflects the decline in home sales, while the drop in revenues for the accommodation and food services sector results from the difficult winter," Woodward said.
This index is based on data from QuickBooks Online, covering the period from Jan. 1-31.
The Intuit Small Business Revenue Index is based on data from more than 150,000 small businesses, a subset of the total QuickBooks Online financial management user base.
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 professionals.
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