The CBIZ Small Business Employment Index has reported a marked increase among hiring efforts with an increase of 1.99% for July, marking a second straight month of gains.
According to the firm, this eclipses the “more nominal” changes seen since the wider reopening of the economy in the spring.
The CBIZ SBEI tracks payroll and hiring trends for over 3,600 companies that have 300 or fewer employees, providing broad insight into small business trends.
In total, it found that 26% of companies in the index expanded employment, while 54% made no change to their headcounts and 20% cut back on staffing.
Hiring data was positive in the Agriculture, Construction, Wholesale Distribution, and Accommodations and Food Services sectors. Meanwhile, the notably negative readings were reported in Education Services and Transportation.
In addition, hring increased in the Southeast (3.04%), Northeast (2.36%) and Central (1.89%) regions, while decreasing in the West (-0.09%).
The ADP and Moody’s employment report also indicated growth in hiring among small-, medium- and large-sized companies. Its July reading showed an overall increase of 330,000 private-sector jobs for the month, with small businesses accounting for 91,000 of these on a monthly basis.
Philip Noftsinger, executive vice president of CBIZ, Inc, said: “The July reading reflected a surge in hiring growth and builds on positive trends established earlier in the summer. While optimism persists as more people get vaccinated and feel comfortable returning to work, concerns surrounding emerging virus variants will keep employment numbers in focus, to assess how small businesses and the larger public react.
“The hiring growth in July points toward people’s willingness and ability to return to work despite pandemic-related hesitations. We will be keeping a close eye on the headwinds that might impact this momentum, including resurgence of the virus and related stimulus measures.”