Intuit Small Business Employment Index shows steady increase in wages with hours worked slightly up.
MOUNTAIN VIEW, Calif. -- Small business employment grew by 0.09 percent in June, equating to a 1.10 percent annual growth rate, according to the latest Intuit Small Business Employment Index.
This translates to approximately 18,000 new jobs in June and a revised estimate of 330,000 total new jobs since October 2009. The monthly report is based on figures from the country's smallest businesses that use Intuit Online Payroll.
"Employment rose, but the rise was at a slower rate for June than for previous months," says Susan Woodward, the economist who worked with Intuit to create the index. "At this point in a recovery, the labor market is still sufficiently slack so small businesses should still be hiring vigorously. They are hiring, but not as fast as in the first quarter."
The data also shows a continued increase in compensation per worker. Compensation grew by 0.3 percent in June and is now $2,577 per month, compared to a revised estimate of $2,570 per month in May.
Monthly hours worked increased by 0.05 percent in June to 103.5 hours, compared to a revised estimate of 103.4 hours in May. This translates to wages of about $30,900 per year for all employees and a 23.5-hour week for hourly employees.
"Hours worked per employee continue to rise, but at a slower rate than we would like," Woodward says. "On the bright side, monthly compensation per employee continues to rise at about the same rate as for the last five months. We do not see the same slowing in compensation as in employment or hours worked.
The Intuit Small Business Employment Index is based on aggregate and anonymous online employment data from approximately 57,000 small business employers each with fewer than 20 employees.