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Mixed findings for small-business employment growth

September 30, 2014

The pace of small business employment growth continues to slow slightly, according to The Paychex|IHS Small Business Jobs Index. The index rose 0.13 percent year-over-year in September to 100.85; however, the index fell 0.14 percent in September — its fourth decline in the last five months — and remains below the 101 level it exceeded from January through July.

“For the second consecutive month, the Paychex|IHS Small Business Jobs Index is showing a mixed story for small businesses employment growth,” said Martin Mucci, president and CEO of Paychex. “While the growth rate has slowed in four of the past five months, the index continues to show positive year-over-year gains.”

In contrast, a separate survey released today by Xero, an online accounting software provider, finds SMBs are having a fiscally healthy 2014 with no signs of a slowdown in 2015. According to the survey, 81 percent of small businesses are experiencing revenue growth this year, with 22 percent are seeing gains of more than 100 percent. For 2015, nearly 90 percent forecast a revenue increase, with 21 percent expecting to grow more than 100 percent. And 51 percent plan to hire now and through 2015.

The online survey was conducted by Radius Global Market Research on behalf of Xero and included 304 small business owners that use Xero online accounting software in the US. The survey was conducted late March and early April 2014.