Small Business Employment Increases, but Revenue Falls for Eighth Consecutive Month
U.S. small business employment saw an increase of 30,000 jobs in
November, while hours worked and compensation also rose. Small business
revenue fell 0.3 percent in October, continuing a decline that began in
The Small Business Employment Index indicates that employment rose by
0.14 percent in November, equating to an annualized growth rate of 1.7
percent. Average monthly compensation grew by 0.5 percent, or $14.
Average monthly hours worked increased by 0.11 percent, or six minutes.
The index is based on data from Intuit
Online Payroll and QuickBooks
Online Payroll, covering the period from January 2007 through Nov.
“The results are definitely mixed for small businesses,” said Susan
Woodward, the economist who worked with Intuit to create the
indexes. “We began seeing some employment gains in April 2010, but
between March and September 2012, the numbers began to drop again. The
good news is they are back up for October and November.”
Increase in Hours Worked, Compensation
Small business hourly employees worked an average of 110.1 hours in
November, up slightly from the revised figure of 110 hours in October,
making for a 25.4-hour workweek.
Average monthly pay for small business employees rose to $2,861 in
November, up 0.5 percent from the October revised figure of $2,847 per
month. This equates to an increase of $14, up from the decrease of $3
seen from September to October. The equivalent annual wages would be
about $34,300 per year, which is part-time work for many small business
Small Business Employment by Geography
The Employment Index showed growth in all U.S. census divisions, except
the West North Central, East North Central and New England regions,
where the number of jobs declined. A breakdown of states tracked by the
index showed the largest employment increases in Maryland and Utah,
while Michigan and Kansas saw the largest decreases.
U.S. Census Division
Percent Change in Employment
East North Central
West North Central
East South Central
West South Central
Small Business Employment by U.S. Census Division saw growth in
most parts of the country. The data reflects employment from
approximately 170,000 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.
Change in Employment
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 Index
The October Small Business Revenue Index shows a 0.3 percent decline
from the previous month. The real estate and health care industries saw
the biggest drop-offs, at 0.9 and 0.7 percent respectively. Professional
services followed with a decline of 0.6 percent. The index is based on
data from QuickBooks Online
and covers the period from January 2005 through Oct. 31.
“The decline in small business revenue is disheartening, and appears to
be happening despite a rise in single-family construction and existing
home sales,” said Woodward. “There has also been a 4.4 percent increase
in the number of people who are self-employed since November 2011. That
brings new entrants to compete with incumbents and may explain the
steady decrease in revenue per small business.”
October Change in
Real estate and rental and leasing
Health care and social assistance
Professional, scientific, and technical services
Accommodation, food services, and drinking places
The Intuit Small Business Revenue Index is based on data from
more than 100,000 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, aggregated data from 170,000 small
business employers, a subset of users that use Intuit
Online Payroll and QuickBooks
Online Payroll. The Revenue Index is based on anonymized, aggregated
data from approximately 100,000 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. is a leading provider
of business and financial management solutions for small and mid-sized
businesses; financial institutions, including banks and credit unions;
consumers and accounting professionals. Its flagship products and
services, including QuickBooks®,
Quicken® and TurboTax®,
simplify small business management and payroll
processing, personal finance, and tax preparation and filing. ProSeries®
and Lacerte® are Intuit's
leading tax preparation offerings for professional accountants. Intuit
Financial Services helps banks and credit unions grow by providing
on-demand solutions and services that make it easier for consumers and
businesses to manage their money.
Founded in 1983, Intuit had annual revenue of $4.15 billion in its
fiscal year 2012. The company has approximately 8,000 employees with
major offices in the United States, Canada, the United Kingdom, India
and other locations. More information can be found at www.intuit.com.