Small business employment and hours worked continued to grow in February with wages remaining flat, according to a new report from Intuit.
The monthly report found that small business employment grew by 0.3 percent in February, equating to an annual growth rate of more than 3 percent. This translates to approximately 50,000 new jobs created nationwide
"This month’s report is a lot like last month’s,” said Susan Woodward, the economist who worked with Intuit to create the Index.
“Small businesses are hiring and their people are working more hours, but measures of compensation are pretty flat, showing that the labor market is still soft. While the rise in employment is good news, this rate of increase is still not going to get us back to full employment very fast.”
Based on this latest data, the employment growth rate for January was revised down slightly to just under 0.3 percent, equating to 60,000 jobs added for the month and a 3.5 percent annual growth rate. Since the growth trend first began in October 2009, small business jobs have increased by a revised estimate of 800,000.
Small business hourly employees worked an average of 107.6 hours in February, translating to a 24.8-hour work week. This is a 0.1 percent increase from the revised January figure of 107.5 hours.
“Hours worked continue to go up, which is another good sign,” Woodward said.
“Based on other analysis we have done on the data, we think that we are seeing higher hours because small businesses are increasing the fraction of their hourly workers who work full time. Hours worked are up about 3 percent over the last year.”