Overall, for the month of November, a mixed report was given yesterday as expected new jobs under performed while wage growth percentage hit a 10 year high. According to the Labor Department, 155,000 new jobs were added for the month of November, missing the 190,000 estimated mark. Despite this, average “hourly earnings were up 3.1 percent over the previous year, matching October’s strong gain, which was the largest single-month rise since 2009. Unemployment remained near historic lows at 3.7 percent.”
When taking a look at small businesses specifically, payroll company ADP “counted 46,000 new jobs at its small business customers, those with up to 49 staffers. That total is up from 30,000 in October, and in line with a monthly average of 43,000 this year.”
The number is a continued drop from last year, where the nation saw an average growth of 61,000 per month. The big issue is the absence of qualified candidates and many owners expressing a wait until “their revenue justifies the added expense and risk of taking on new staffers.”
Another Small Business report, “The CBIZ Small Business Employment Index (SBEI), which tracks hiring trends among thousands of companies that employ 300 or fewer employees across the U.S., reported a month-over-month increase in hiring of 0.48 percent in November, following a decrease in hiring of 0.52 percent in October.”
The November is actually on the high end of its normal number, which generally averages a decrease of 0.12 percent. This year’s “
reading is the third-largest increase during the November period” since its 2009 inception.
“In November, the Northeast and Central regions experienced hiring decreases of 0.41 and 0.12 percent, respectively. Meanwhile, the West and Southeast demonstrated hiring increases of 4.16 and 0.66 percent, respectively.”