Over the past few months – since the end of the particularly harsh winter season that made it difficult for companies of any size to drive revenues – many small business owners have seen growth significant enough that they’re now feeling better about their firms’ future chances for success. As a consequence, more are deciding to bring aboard additional workers seemingly every month, and that trend continued through July.
In all, the Small Business Jobs Index from Paychex and IHS increased 0.34 percent over the 12-month period from July 2013 to present, according to a report from the companies. That brought the level to a reading of 101.11, which is close to the all-time high of 101.26 seen in April of this year.
“July’s index results show that small business employment growth is picking up once again, continuing the long-term trend we’ve been seeing for some time now,” said Martin Mucci, president and CEO of Paychex.
Which parts of the country drove the growth?
In all, it seems that the mountain states and the upper Midwest had the most significant positive movement in the one-year period, the report said. The former region (Montana, Idaho, Wyoming, Colorado, Utah, Nevada, Arizona, and New Mexico) led the way with small business employment growth of 1.41 percent overall, but West North Central (North and South Dakota, Minnesota, Nebraska, Iowa, Kansas, and Missouri) weren’t far behind at 1.38 percent increases.
Meanwhile, only two parts of the country saw declines during this time: the Pacific, and the West South Central, the report said. The Pacific – which is comprised of Alaska, Hawaii, California, Washington, and Oregon – saw a slightly smaller drop, of just 0.12 percent. Meanwhile the West South Central – Texas, Oklahoma, Louisiana, and Arkansas – had more trouble, with a 0.26 percent slide. Interestingly, though, Washington still has the best small business employment conditions of any state in the country.
Owners who want to make sure their companies are in the best position to hire in the coming months might want to consider the ways in which their current expenditures are affecting their bottom lines. By trying to find more affordable small business insurance coverage – such as errors and omissions insurance, for example – companies might be able to free up as much as a few thousand dollars annually, which can then be devoted to other aspects of the company.
