Small Business Employment Sees Highest Growth Since January 2012

Revenues Continue to Decline Across Industries

MOUNTAIN VIEW, Calif. – Jun. 04, 2013 – American small business employment gained 35,000 news jobs in May, while compensation remained stagnant and hours worked decreased. Small business revenues continued to drop in April, with the real estate industry seeing the biggest decline for the month at 1.5 percent.

Those are among the findings of the monthly Intuit Inc. (Nasdaq: INTU)Small Business Employment and Revenue Indexes. The report also found that:

  • Employment rose by 0.18 percent in May, for an annualized growth rate of 2.1 percent.
  • Average monthly compensation showed no growth in May, remaining steady at the April revised estimate of $2,696.
  • Average monthly hours worked by hourly employees fell by 0.12 percent in May, which is equivalent to a decrease of six minutes from April’s figure of 106.8 hours.

This employment index is based on data from Intuit Online Payroll andQuickBooks Online Payroll, covering the period from April 24 through May 23.

“The small business economic picture remains conflicted,” said Susan Woodward, the economist who worked with Intuit to create the indexes. “While May’s small business employment figures are the best we have seen since January 2012, small business revenues have continued to decline month over month on a per-business basis.”

“Among the industries tracked, small business retail revenues have been hit the hardest this past quarter, followed by small business healthcare, which has seen the biggest revenue decline over the past year. The silver lining continues to be the construction sector, which is the only one to see year-over-year revenue growth on a per-business basis. The good news is the hiring rate, which has been essentially flat since mid-2009, has picked up slightly.”

The Intuit Small Business Employment Index shows a 0.18 percent increase in employment for May. The Employment Index reflects data from approximately 191,000 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. The National Employment Index is from the Bureau of Labor Statistics.

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