Small Business Employment Rates Grow in February
Overall, the employment situation in the United States has been tepid for some time. Job growth has been steady, but has not kept the pace some analysts would have preferred. However, hiring looks to be a positive for small businesses, as a recent index showed.
According to Intuit’s Small Business Employment Index, employment at smaller organizations increased by 0.07 percent February, resulting in 15,000 new jobs for an annualized growth rate of 0.8 percent. The index is based off data from January 24 through February 23 of 2013.
Not only did small businesses hire more, they paid their employees more, who incidentally worked longer hours. Average monthly compensation rose 0.4 percent, or a seasonally adjusted $12, compared to the $6 decrease in January. Average monthly hours also increased 0.17 percent or 12 minutes.
However, even though they paid out more to employees, small businesses actually lost revenue. The accompanying Small Business Revenue Index dropped 0.6 percent. The retail sector bore the brunt of a revenue decline, with revenue decreasing 1.3 percent from the month before.
If firms are experiencing lower revenue and increased employment levels and wages concurrently, it could lead to a cash flow crisis. National Funding recommends small business owners look into procuring a merchant cash advance that could alleviate some of their potential fiscal problems.