Philip Noftsinger, business unit president for CBIZ Payroll Services offers, “Job growth is still too modest to offer real, clear visibility for us to project future increases in hiring. Nonetheless it is a small sign of hope with the economy. It remains to be seen how the election’s results will impact small business owners’ confidence in adding to payroll in the future.”
Additional take-away points from the October data include:
- Hiring is picking up, but barely: In October, 25.3 percent of the 3,082 firms surveyed indicated that they added to payroll versus 23.4 percent that did so in the month prior.
- More companies choosing to sit tight: Of the 3,082 companies included in the survey in October, 50.6 percent made no changes to their employee headcount up modestly from the 49.5 percent that held steady in September. Anticipating potential changes in economic and tax policy after this week’s elections may have restrained hiring despite improving business conditions.
- What to watch: The aftermath of the election and how the newly minted Congressional representatives and senators approach economic and tax policy could sway future hiring decisions by these smaller businesses.
Noftsinger adds, “Small businesses are a microcosm for our larger economy and problems and solutions are often first discovered within this Petri dish. Despite the glimmers of hope we see, systemic economic structural challenges still need to be overcome. With limited credit available, weak consumer demand and healthcare costs conspiring to undermine the confidence of the small business owner, it’s no wonder our employment survey has reflected limited hiring activity.”
