Outlook on small business and startup hiring better than it has been in years
As we head into mid-summer and the weather heats up, hiring in the small business and startup economy may start doing the same.
There are several indicators pointing to a sustained hiring push.
In a survey done by Paychex, 54 percent of small business and startup owners said they plan to hire in the next six months. And fewer than half of those were hiring in traditionally seasonal businesses like construction and food service, suggesting these may be long-term jobs.
Meanwhile, our SurePayroll Small Business Scorecard Optimism Survey found in May that 84 percent of small business and startup owners are optimistic about the economy. This metric has been steadily trending up since February, and in May 2014 only 75 percent were optimistic.
It’s a culmination of the turnaround we’ve been watching since the bottom of the recession in 2009. Small businesses and startups have steadily increased profits, revenues, and according to Paychex, 2014 was the best summer for hiring in the last 10 years. Momentum is building.
The SurePayroll survey found earlier this year that 52 percent of small business and startup owners have extra cash on hand to take advantage of new opportunities – a number right in line with the amount that plan to hire – and 61 percent said they are growing or plan to grow larger.
There could, of course, be setbacks in the broader economy that delay this growth. And we can’t account for the individual challenges faced by each business – some industries and areas of the country are doing better than others.
However, the overall picture right now is very positive, with small businesses and startups seemingly more primed for expansion than at any time in the last six years.
Learn more in Paychex’s Summer of Small Business/Startup Infographic.
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Andy Roe is the General Manager of SurePayroll, Inc., a Paychex Company. SurePayroll is the trusted provider of easy online payroll services to startups and small businesses nationwide. SurePayroll compiles data from small businesses nationwide through its Small Business Scorecard optimism survey, and exclusively reflects the trends affecting the nation’s “micro businesses” — those with 1-10 employees. You can follow Andy on Twitter @AndrewSRoe.