The January employment increase represents 20,000 new jobs added and an
annualized growth rate of 1.3 percent.
On a seasonally adjusted basis, average monthly compensation fell by 0.2
percent in January, or $6, compared to the increase of $13 seen in
December. Average monthly hours worked decreased by 0.9 percent, or
almost one hour, compared to the increase of five minutes seen last
month. The index is based on data from Intuit
Online Payroll and QuickBooks
Online Payroll, covering the period from Dec. 24 through Jan. 23.
“The rate of small business employment continues its slow climb after a
slight dip from April through September 2012,” said Susan
Woodward, the economist who worked with Intuit to create the
indexes. “However, the number of small business jobs now stands at a
little over 19.9 million – still below the peak in April 2012, and well
below its pre-recession level of 21.2 million jobs in March 2007. Given
the continuing high levels of unemployment, we can expect little to no
impact on small business wages and employment levels from the return of
the employee payroll tax to its previous level of 6.2 percent. Instead,
we will be much more likely to see a decline in the consumption spending
of employees, who will be taking home less money.”
Decrease in Hours Worked, Compensation
Small business hourly employees worked an average of 105.1 hours in
January, down slightly from the revised figure of 106.1 hours in
December, making for a 24.3-hour workweek.
Average monthly pay for small business employees dropped to $2,676 in
January, down 0.2 percent from the December revised figure of $2,682 per
month. The equivalent annual wages would be about $32,100 per year,
which is part-time work for almost half of small business employees.
Small Business Employment by Geography
A breakdown of employment growth by state showed mixed results for
January. Among the 33 states tracked by Intuit’s Small Business
Employment Index, 11 showed employment increases, two remained flat, and
20 showed decreases. Utah and Nevada saw the largest increases, while
Michigan and Indiana saw the greatest declines.
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 Decline
The December Small Business Revenue Index showed a 0.4 percent revenue
decline on a per business basis. Construction was the sole industry to
see an increase, at 0.3 percent. The real estate and retail industries
saw the biggest drop-offs, at 0.8 percent each. This index is based on
data from QuickBooks Online
and covers the period from Dec. 1 – 31.
For the entire year, the construction industry was the only one with
increased revenue, reporting a 3.1 percent rise, compared to a decline
of 1.8 percent for small businesses overall. The retail and healthcare
sectors reported the biggest decreases over the past year with a 5
percent and 3.8 percent decline respectively.
“The revenue decline that began in early 2012 coincides with a rise in
self employment,” said Woodward. “This increase of new entrants into
existing industries may explain the decline in revenue per business.
There are now more businesses competing for business in the same
December Change in Revenue (%)
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 8,500 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.