Things are looking up, according to Intuit Small Business Employment Index, which shows job growth, more hours worked and more money earned in April.
Intuit Payroll’s Small Business Employment Index, a monthly report that provides almost real-time employment trends of the nation’s businesses with fewer than 20 employees, shows job creation, wages and hours worked based on approximately 65,000 small businesses who use Intuit Online Payroll.
The results of Intuit Inc. (Nasdaq: INTU) Small Business Employment Index show a 0.3 percent rise in small business employment for the month of April equating to an annual growth rate of nearly 3.6 percent. This translates to approximately 60,000 new jobs for the month.
This data affects the previous months’ calculations because of seasonal factors and the moving average process used to obtain the curve. Based on this latest data, the employment growth rate for March was revised slightly up to 0.3 percent, equating to 65,000 jobs added for the month. Since October 2009 when businesses began slowly hiring again, small businesses have created 845,000 jobs.
Higher pay and more hours
In addition to small businesses creating more jobs, they also raised hours and pay for their employees. Small business hourly employees worked an average of 109.8 hours in April, which breaks down to a 25.3-hour work week. This is a 0.7 percent rise from the 109 hour average in March. Average monthly pay for all small business employees was $2,653 in April, which translates to wages of about $31,800 per year. Many small business employees are part time so these wages are extremely important as they might be supplementing other wages or being used to make crucial payments. This is a 0.5 percent increase compared to the March revised estimate of $2,641 per month.
“Small business employment is showing continued strength,” said Susan Woodward, the economist who worked with Intuit to create the Index. “Employment is up, hours worked are up, and total compensation per employee is up. Moreover, employment is up across the country. While we have a long way to go to full employment, we have seen continued improvement now for a year-and-a-half.”
The Intuit Index also breaks down employment geographically and according to data for the month of April, there was job growth in every state in which there are more than 1,000 Intuit Online Payroll customers as shown by the table below:
|State||Percent Rise in Employment|