TriNet’s SMBeat Employment Report Shows Sluggish Job Growth in August
Positive Employment Growth Seen in Southern California Biotech Sector During August While Other Sectors and Regions Experience Modest Downtick
SAN LEANDRO, Calif. (September 24, 2012) – TriNet’s SMBeat, a detailed analysis of trends in key human capital economic indicators for small businesses, reports that net TriNet employment levels grew 0.43 percent in August, nearly 6x the national average, but down 69 percent from July’s growth of 1.38 percent. Softened hiring of 2.9 percent combined with increased terminations of 2.5 percent resulted in slower job growth during August.
The U.S. Bureau of Labor Statistics announced the creation of 96,000 new jobs for the US economy in August. Translated to percentage terms, this represented only a 0.07 percent increase over July employment levels. By contrast, TriNet member company employment levels increased 0.43 percent, almost six-fold that of the national average.
Hiring rates at TriNet companies dropped 17 percent to 2.93 percent for July. Total terminations increased 16 percent to 2.51 percent, split between 1.31 percent voluntary quits and 1.21 percent involuntary discharges. The increase in voluntary quits signals positive churn in the workforce
Hiring Trends in Selected Regions and Vertical Markets
In August, biotech companies in Southern California saw net job increases of 2.7 percent, but information technology firms in the San Francisco Bay Area only experienced a 0.71 percent net job increase and finance companies in New York only a 0.62 percent increase. Strong net job growth in the Southern California biotech sector shows a silver lining to otherwise tepid growth for technology companies in the San Francisco Bay Area and financial service firms in New York.
The complete 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 begin 7 days prior to the beginning of the current calendar month and end 7 days prior to the beginning of the next calendar month. 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 http://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 service and payroll processing to high-level human capital consulting, TriNet's Professional Employer Organization (PEO) expertise is integrated with every facet of a client’s business. 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.
