If you’re looking for a job, it’s still rough out there, according to new research from payroll and accounting software firm, Intuit Inc. The monthly SMB outlook report shows missed new job goals, longer hours and an overarching slowing growth rate among small business across the country. In short, it is not a very pretty outlook for SMBs looking to grow and unemployed wage workers looking for new gigs.
In July, small business employment grew by 0.2 percent, equating to just 2.4 percent annual growth rate, which translates to 40,000 new jobs nationwide. That is 5,000 fewer jobs than predicted for the month originally.
However, the news is not all bad. Small businesses are feeling a push to meet a growing need. Instead of taking on new employees to meet the demand, small businesses are relying on existing workers to work more hours, which translates to more income for those hourly workers.
Hours worked in July were up 0.9 percent, which resulted in a 0.7 percent increase in compensation in July. The average monthly income was $2,624 per month, up from a revised estimate of $2,606 per month in June. The average monthly hours worked grew more than expected to 109.1 hours, compared to a revised estimate of 108.2 hours in June. This translates to wages of about $31,500 per year for SMB employees, and a 25.2-hour work week for hourly employees.
“This is a big increase for compensation which, on an annual basis, would be nearly 10 percent per year,” said economist Susan Woodward.
In July, the geographies experiencing the greatest growth were the Mountain States, the South Atlantic and the Pacific Coast. New Jersey was the only state that saw a decrease in employment.
So what does it all mean?
“It appears that small businesses are busy, and need additional help, but are asking their existing people to work more hours rather than hiring more people,” said Woodward.
