Payroll
service provider SurePayroll's small business owner sentiment report plummeted
to an all-time low, as only 33 percent of business owners report feeling
optimistic about the small business economy. That is down significantly from
June, when 67 percent reported being optimistic, as well as last month, when 48
percent suggested they were optimistic. The company's Optimism Survey also
found that small business owners' confidence in the government's ability to
stimulate the economy remains low, despite the recent jobs proposal from the
White House.
The
September results for SurePayroll's monthly Small Business Scorecard, which
includes hiring and wage data for the top 35 U.S. metropolitan statistical
areas, showed that on a national level there continues to be flat or decreased
hiring for the 12th month in a row, totaling a year-to-date decline in hiring
of 2.7 percent. Wages remain down slightly (0.4 percent) for the year.
The
survey also found 20 percent were more optimistic after President Obama's speech
in early September, while 40 percent were more pessimistic, and 30 percent felt
the president's proposal would increase jobs, while 70 percent felt it would do
nothing or decrease jobs. Only 10 percent of those surveyed indicated they
might hire if the plan is enacted as defined.
"The
continued economic uncertainty has small businesses sitting on the edge of
their seats hoping for a Hollywood ending that doesn't appear likely anytime
soon," said Michael Alter, president and CEO of SurePayroll. "The
good news is that small businesses are continuing to work smarter in the face
of uncertainty, relying on technology to improve efficiency while still getting
the most out of employees.”
Alter
also pointed out that small business owners continue to rely on contractors to
fill their needs versus hiring new employees—contractor use showed a
month-over-month (MOM) increase of 2.3 percent. A look at the SurePayroll Small
Business Scorecard's MSA data shows that for the sixth month in a row, the
South remains the only positive hiring region, having experienced minimal MOM
growth in hiring. In contrast, the Northeast, Midwest and West all continue to
show negative MOM growth. Year to date, the South is up 0.4 percent, while the
other regions are all negative.
An
economic indicator created by a payroll company, the SurePayroll Scorecard has
provided a monthly look at national hiring and wage trends since September
2004. SurePayroll's Scorecard compiles data from over 30,000 small businesses,
and reflects the trends affecting the nation's "micro
businesses"—those with an average of eight employees.
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