Small Business Hiring, Salaries Rise

 

Despite their concerns about the economy, small business owners added new jobs and increased salaries at a record pace in the first six months of the year, according to a survey by online payroll provider SurePayroll.

 

According to the June 2007 SurePayroll Small Business Scorecard, the small business economy continues to expand across the nation, with June marking the seventh straight month of growth. SurePayroll reported that small businesses added employees in 18 out of 21 benchmark states. Only 3 states-Indiana, Virginia, and Michigan-saw a decline in hiring. Overall, in the first six months of the year, small business hiring increased 2.2%. It's now on track to reach 4.5% for all of 2007, compared with a 0.2% decline in 2006.

 

"The small business economy is growing in spite of a number of negative economic factors-rising gasoline prices, higher interest rates, declining house prices, and the subprime mortgage debacle," says SurePayroll President Michael Alter.

 

Salaries also continue to rise. The average small business salary in the United States is $32,215, up 2.9% from the same time last year. However, 4 of the 21 benchmark states saw a year-to-date decline in average paychecks, with New York reporting the largest decline at 7.3%. Nevada led the nation in salary increases, with the average paycheck increasing 11.7% in the first six months of 2007.

 

"Simply put, it's getting tougher to find good people. There is a labor shortage in play that is driving up costs," Alter says.

 

The SurePayroll Small Business Scorecard is based on payroll data for more than 18,000 of its small business customers with 100 employees or fewer across all industries. The Scorecard comprises data from all 50 states but singles out 21 of them as benchmark states. For additional information, go to www.surepayroll.com/scorecard/2007/june.