Small Business Hiring Slows, Revenues Slide: Intuit
Small businesses overall saw declines in revenue in June, while hiring remained sluggish, according to the report.The latest numbers concerning the health of small businesses in the United States suggest the economic environment remains challenging, as small businesses are seeing weak employment and compensation growth, while hours worked and revenue rates decreased, according to the results for the monthly Intuit Small Business Employment and Revenue Indexes, which provide a picture of the economic health of the nation's small businesses. The data reflects employment from approximately 82,000 small business employers, a subset of small businesses that use Intuit Online Payroll. Based on July's numbers and revised national employment data from the Bureau of Labor Statistics, Intuit revised downward the previously reported June growth rate to 0.2 percent. This equates to 40,000 jobs added in June, down from a previously reported 75,000 jobs, though Intuit noted these numbers are expected to change once the index is recalibrated. Employment increased by 0.17 percent in July, for an annualized growth rate of 2.1 percent, equating to approximately 35,000 new jobs created.
Based on data from Intuit Online Payroll and covering the period from January 2007 through July 23, 2012, average monthly compensation grew by 0.3 percent, or $7, while average monthly hours worked decreased by 0.3 percent, or 24 minutes. However, the average monthly pay for all small business employees increased to $2,724 in July, or the equivalent annual wage of about $32,700 per year, which the report noted is part-time work for many small business employees.