April SMBeat Reports Tepid Growth in Employment Levels
Oregon technology market hot, employment levels spike as region's industry sees largest influx of VC funding since dotcom boom
SAN LEANDRO, Calif. – May 9, 2013 – TriNet’s SMBeat, a detailed analysis of trends in key human capital economic indicators for small businesses, reports April job creation contracted 78 percent from March to 0.16 percent. This continues a three-month downward trend from a strong 1.06 percent start in January, making April the weakest employment growth month since 2009. The data contradicts recent surveys from the Silicon Valley Bank, which reported 87 percent of polled tech firms plan to hire this year as well as a Career Builder survey, which predicted steady hiring rates in Q2.
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The March Bureau of Labor Statistics report showed a total employment increase of only 138,000 jobs for the month, a significant decrease from the 332,000 jobs added in February. Plummeting hiring rates were largely responsible for decline in overall growth. This outcome possibly reflects the upcoming tax liabilities expected by consumers in the retail trade sector, which suffered a loss of 24,000 jobs.
SMBeat also reports Oregon tech companies experienced a 7.8 percent growth in April compared to the national 1.01 percent increase industry-wide. This growth has been fueled by the largest regional influx of Q1 venture capital funding since the dotcom boom.
Despite favorable regulatory tailwinds, Massachusetts’ Biotech companies saw a 3.3 percent net job loss, far worse than the industry norm of 0.82 percent. This loss comes as a surprise in light of the $1 billion Massachusetts Life Science Initiative established in 2008 by Governor Deval Patrick. In addition, the average annual salary of MA biotech employees is approximately $10,000 less than the industry standard of $104,000.
The complete SMBeat report is available here.
About SMBeat
SMBeat provides a detailed analysis and a predictive forecast for trends in key human capital economic indicators for small businesses. All reported statistics are seasonally adjusted unless otherwise indicated. All reported months run from the 13th of the previous month to the 12th of the current month.[1] TriNet generates payroll information by tracking real-time movements within its base of approximately 5,000 entrepreneurial businesses whose employees earn approximately $100,000 in annual base salary. These companies fall primarily into three broad industry segments: technology, professional services, and financial services. SMBeat aggregates and reports data reflecting compensation, hiring and retention (both involuntary terminations and voluntary resignations), and also provides ongoing analysis of contributing factors to these trends, including regional, industry and seasonal variables. Additional details can be found on the company’s SMBeat web page https://www.trinet.com/smbeat. Technical questions can be submitted via email to smbeat@trinet.com.
About TriNet
TriNet is a trusted strategic HR partner to small businesses, providing critical HR-related services on an outsourced basis. TriNet's solutions help contain costs, minimize employer-related risks, and relieve administrative burden to keep an entrepreneur's focus on their core business functions. From employee benefits and payroll processing to high-level human capital consulting, TriNet's Professional Employer Organization (PEO) expertise and best in class systems relieve clients of many of the day to day administrative burdens that distract them from building and growing their businesses. TriNet specializes in serving fast-moving companies in fields such as technology and financial services, who recognize that top-quality employees are the most critical competitive asset. For more information, please visit https://www.trinet.com.
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[1] The SMBeat has adjusted the monthly reporting cycle to end on the 12th of the month, to mirror the methodology of the US Bureau of Labor Statistics.
