Small Business Hiring Accelerates in April
TriNet’s Human Capital Index highlights an improved employment outlook, as layoffs decreased in the last month
SAN LEANDRO, Calif. (May 5, 2010) – TriNet, the country’s second-largest provider of human resources outsourcing solutions to small businesses, today released its April Human Capital Index (HCI), the only indicator of the real-time employment and compensation practices of thousands of small technology, professional services and financial services companies. April’s HCI revealed that innovative small technology and services companies increased hiring during April, and layoffs decreased, indicating an improved employment outlook.
TriNet’s April Hiring Index is at 98, a five-point increase from March’s 93 reading. Small businesses are hiring more frequently than larger counterparts; despite the U.S. hiring index being at 108 HCI for April, three-point increase from last month. As President Barack Obama stated in a weekly Presidential address late last year, small businesses continue to be the “engine” of the U.S. economy—creating 65 percent of all new jobs over the past decade and a half—and continue to lead employment trends across the country.
“Our data, which shows small businesses are hiring again, is supported by anecdotal evidence which indicates companies are now adding multiple positions, which is a good indicator of employer confidence,” said John J. Midgley, TriNet’s vice president of products. “Our data also reveals that layoffs continued to decrease—a trend we’ve seen for the past few quarters—further reinforcing the message that small employers are growing by bringing on new positions.”
Small Companies Increase Hiring—But Don’t Break out the Bubbly Just Yet
U.S. employment continues to flourish within the broader economy, and TriNet’s analysis of small businesses shows that the rate of hiring is also gradually rising. Yet even with gradual improvements, small businesses are actually hiring at a slower pace than they were in Q4 2009. The TriNet Hiring Index was at 98 in April, showing an increase of five points over March but still remaining below the broader U.S. hiring trend.
Layoffs Decreased in April
The pace of small-business layoffs declined slightly, but remains well below Q4 2009, consistent with a general trend of rising employer confidence. The pace also remains well below 2009 numbers, as well as below the layoff rate in the broader economy. TriNet’s Layoff Index declined to 82 in April, down one point since March.
About the Human Capital Index (HCI)
The TriNet Human Capital Index draws on real-time employment information from about 3,000 small companies who employ between 10 - 200 employees. These companies fall primarily into three broad industry segments: technology, professional services and financial services. The HCI aggregates and reports data reflecting hiring and involuntary terminations not related to performance (layoffs). The HCI is reported monthly, using current payroll and HR data compiled as of the 24th of each month. Additional details can be found on the company’s HCI web page.
TriNet serves as a trusted HR partner to small businesses, to help contain costs, minimize employer-related risks, relieve administrative burden, and keep focus on core business functions. From routine employee benefits service and payroll processing to high-level human capital consulting, TriNet's PEO expertise is integrated with every facet of a client’s organization. Its solutions specialize in serving fast-moving companies in fields such as technology and professional services, who recognize that top-quality employees are the most critical competitive asset. For more information, please visit http://www.trinet.com.
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