Jump in Small Business Employment

Employment at small businesses increased in March at the highest rate in over two years, according to payroll figures from Intuit.

Intuit’s Small Business Employment Index indicated that small business employment increased by 0.3 percent in March, while monthly compensation and the number of hours worked also increased.

Intuit estimated that small business employment grew at an annual growth rate of 3.8 percent. The figures are based on small businesses with fewer than 20 employees that use Intuit Online Payroll. Another payroll provider, ADP, also reported an increase in small business hiring in March, but SurePayroll saw a slight decline.

“This is the strongest small business employment report we have had in a long time,” said Susan Woodward, the economist who worked with Intuit to create the index. “Yet at the same time, the hiring rate has remained flat at just above five percent since May 2009. This indicates that small firm employees are staying with their current employers, rather than leaving for bigger firms. In normal times, the turnover at small firms, which typically pay less than their larger counterparts, is high. Currently, the turnover rate is still low compared to normal.

Click here for the full article.