The Cbiz Small Business Employment Index fell 2.14% on a seasonally adjusted basis in July.  

“July’s small business hiring data showed a dramatic reversal from the strong reading that was observed in June,” said Anna Rathbun, chief investment officer at Cbiz. “Nearly every industry exhibited some weakness in payroll, which makes us wonder about corrective measures from possible overhiring in search of skilled workers earlier this year.” 

On the industry level, hiring increased in government, insurance, management and manufacturing. All remaining industries experienced job losses, with the most notable declines seen in accommodations and food services, arts, entertainment and recreation, education services, and retail trade. 

According to Rathbun, job losses seen in recreational and outdoor industries in the middle of the summer are typically unusual.  

“This trend could suggest that the ‘you only live once’ phenomenon may have reached its peak, leading to less demand in these industries,” she said. 

Regionally, the report found the West and Central regions of the US experienced the highest job losses in July, with declines in hiring of 5.55% and 2.10%, respectively. The next job losses were in the Southeast and Northeast, where hiring contracted by 1.84% and 0.56%.  

Additionally, 17% of companies in the index increased staffing, 57% maintained their existing headcounts and 26% reduced employment totals. 

The Cbiz Small Business Employment Index tracks payroll and hiring trends for more than 3,200 companies that have 300 or fewer employees.