Salaries low, but jobs are availableSurePayroll president Michael Alter says the real March Madness is in the hiring figures, with small businesses increasing their employee numbers last month.
The Small Business Scorecard published by SurePayroll showed two indicators: one not real surprising, and one that raised some eyebrows.
While average paychecks at small businesses dipped nationwide, hiring at small businesses increased in March 2008. SurePayroll bases their figures on their payroll processing client base of 18,000 small businesses.
March wasn't the only month showing a rise in hiring. Alter wrote that March 2008 represented the sixteenth straight month of small business hirings increasing.
Unfortunately, it seems the jobs being created aren't helping employees much with their confidence in the economy, especially with gas easily topping $3 per gallon thanks to egregious speculation in gas and oil.
The SurePayroll figures found lower salaries being paid for these new hires, a situation that likely permits small businesses to expand their staffs. "A modest reduction in salaries is much healthier for the economy than the alternative scenario, that of growing unemployment levels," said Alter.
Along with declining small business salaries, the report noted luxury goods, high-end restaurants, and home construction aren't faring well when it comes to clients. Other businesses grow while some suffer, which just happens in real life.
Alter credited shifts by larger businesses into giving work to small businesses to cut costs as a factor in the rise of small business growth. "So, counterintuitively to some extent, when large businesses suffer, it can actually help small businesses to grow," said Alter.
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