Small-business hiring dropped 2.55 percent in September after a 1.15 percent increase in August, according to the CBIZ Small Business Employment Index, a barometer for hiring trends among companies with 300 or fewer employees.
This drop is the third largest statistical decline for the report.
“The CBIZ Small Business Employment Index shows a dramatic drop in employment in businesses with less than 300 employees for September,” says Philip Noftsinger, business unit president for CBIZ Payroll Services. “Part of the reason is the traditional end of summer and the start of the back-to-school season; however, this drop registers higher than previous September shifts we’ve tracked.”
The survey also finds that 18 percent of respondents brought in more employees, and 32 percent respondents reduced staff while 50 percent of respondents report making no changes to their work force numbers. According to CBIZ Payroll Services, this recent decline is enough to consider whether the fiscal cliff is troubling for small-business owners. This could also impact hiring for the holiday season if no solution is present.
“If today’s reading is supported by additional negative readings from other indicators and prospective evaluations of the SBEI, the ‘fiscal cliff’ may be causing small business owners to reduce the resources they are deploying,” Noftsinger says. “The inability to act by the federal government is likely a key reason for this situation.”