Intuit QuickBooks has announced the "Intuit QuickBooks Small Business Index" for June, 2023. The index serves as a powerful monthly indicator of employment and hiring among small businesses in the US, Canada and the UK developed in collaboration with leading global economist Professor Ufuk Akcigit of the University of Chicago.
This latest index saw small businesses with one to nine employees in the US create 23,200 jobs since May representing a 0.18% increase.
Nationally, these businesses now employ 12,886,500 people*, up from 12,863,300 in the previous month. (This is the first time small business employment has increased in the US since the Intuit QuickBooks Small Business was launched in March 2023.)
Sectors with the largest small business employment growth:
- Agriculture, natural resources, and mining (+.58%)
- Construction (+.30%)
- Education and health services (+.17%)
Regional small business employment indices for June:
- Small business employment rose fastest in the Plains region (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota) with a monthly growth rate of 0.62% in June — or 5,400 new jobs created.
- For the total number of jobs created, the Great Lakes region comes out on top, with 7,300 new jobs — a monthly growth rate of 0.39%. This region covers Illinois, Indiana, Michigan, Ohio and Wisconsin.
- The only US region where small business employment did not grow in June was the Southwest (Arizona, New Mexico, Oklahoma, Texas). But employment didn’t fall either; the monthly growth rate was flat, at 0%.
For more details, refer to the most current index findings HERE.
In announcing the index, Ufuk Akcigit, the Arnold C. Harberger Professor of Economics at the University of Chicago, said, “In May, the inflation rate exhibited a deceleration, with a Consumer Price Index of 4%, marking its lowest level in two years. Additionally, the Federal Reserve broke its pattern of ten consecutive interest rate hikes since March 2022 by opting to skip an increase.
These developments coincided with a notable upswing in small business optimism, as reported by the National Federation of Independent Business Owners. We are pleased to report that the Intuit QuickBooks Small Business Index has captured these positive momentums in the small business sector, as evidenced by an 0.18% increase in small business employment compared to the previous month.
This growth is a significant milestone, as it marks the first positive expansion since the launch of our index in March 2023. This may be a signal of improving conditions within the US small business landscape; a close watch of the Index over the next few months will show if this growth trend continues. The positive developments we witnessed in June can primarily be attributed to several factors.
Firstly, the easing inflationary pressures played a crucial role in fostering a conducive environment for small business growth. Additionally, the stability of interest rates, and the resilience displayed by the banking sector, further contributed to the expansion of small business activity during this period.”
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