Small Business Finance News
Small Business Salaries Decrease In June, Hiring And Optimism Increase
Written by Jenna Weiner
Published: 7/2/2009
The SurePayroll Small Business Scorecard indicated that small business salaries decreased in June, but hiring and optimism increased.
The latest SurePayroll Small Business Scorecard brought both good and bad news for small businesses, with reports that salaries have decreased but hiring and optimism have increased.
The results from quarter two of this year indicate that small business hiring increased 0.7 percent, a 0.1 decrease from last quarter's growth.
Year-to-year, hiring has increased 1.5 percent, while the month-over-month increase of 0.2 percent is the largest monthly increase this year.
Salaries, meanwhile, have decreased by 4.3 percent so far this year, and this quarter's 2.5 percent decrease marks a steeper drop than last quarter's drop of 1.8 percent. The year-to-year salary figure has decreased by 6.6 percent, from $32,386 in June 2008 to $30,243 this month.
Though the salary reduction makes it easier for small business owners to pay employees - possibly correlating with the increase in hiring - it could also translate to less consumer spending.
Despite the decrease in their paychecks, small business owners are reporting increased confidence in the economy, with 79 percent of respondents saying they were optimistic. This marks a significant increase from April's 66 percent, and a slight increase from May's 73 percent.
However, the national economy is not faring as well as small businesses when it comes to hiring - the U.S. Bureau of Labor Statistics recently announced that nonfarm payroll employment continued to decline in June.
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