In the second quarter of 2019 the USA economy picked up for small business. Reports show that employment is rising and so are wages. Among Professional Employment Organizations growth has been strong in the proceeding 12 month period. Highlights include:
- 76 percent of PEOs reported revenue increased in Q4 2018 compared to one year earlier.
- In the most recent quarter (2019 Q1), small business optimism dipped but remained historically high (its 15-year peak had been reached in the previous quarter).
- Total employment among small businesses (1-49 employees) increased by 118,000 jobs in 2019 Q1.
- 74 percent of the growth was among businesses with 20-49 employees.
- Over the last 12 months, the unemployment rate has decreased in 35 states, while increasing in 10.
- The average wage rate among small business employees went up 2.5% over the last 12 months.
- The hiring and job openings rates are currently highest in the Leisure/Hospitality and Professional/Business Services industries.
- Small business wages increased the most in Leisure/Hospitality and Manufacturing over the last 12 months.
Small Business Employment Change
Employment (total non-farm private sector), change in thousands, by company size
Unemployment Rates Dropping – Wages Increasing
In some of the largest states, unemployment claims are dropping and wages are increasing for workers at business with less than 50 employees. The economy keeps getting better for the USA!
12 Month Change
|Small Business Average Hourly Wage||Small Business 12 month change|
|USA Overall||-0.2||$ 27.01||2.5%|
|New Jersey||-0.3||$ 27.34||1.5%|
|New York||-0.4||$ 27.28||3.2%|
|North Carolina||-0.1||$ 24.53||2.4%|
2019 Q1 Unemployment Rates by State
Conditions by Industry Sector
|People Hired||12 Month Change||Average Wage||12 month Wage Change|
|Education and health services||3.00||0.20||$ 28.00||1.5%|
|Leisure and Hospitality||6.50||0.10||$ 17.10||4.2%|
|Professional and business services||5.50||-0.10||$ 32.84||2.4%|
|Transportation and utilities||1.20||0.30||$ 24.88||3.4%|
As the competition for workers escalates small business are raising wages and must work harder to make their companies a preferred employment option in their industry and location. Joining a PEO allows small business to offer top shelf benefits package for their workers.
Data in this article was sourced partially from the National Association of Professional Employers- NAPEO. We thank them for their good work.