Small Business Finance News
Small Business Hiring Increases, Salaries Drop
Written by James Conroy
Published: 5/5/2009
Although small businesses are increasing their hiring, salaries are going in the opposite direction.
Although job losses continue to mount across the country, it appears that small businesses have been able to avoid major layoffs with a new report finding that SMB hirings increased in April for the 29th consecutive month.
According to the April Small Business Scorecard from SurePayroll, small business hiring increased 0.3 percent last month with the hiring index reaching 11,404 - a 36 point increase over March.
However, as the hiring figures continue to increase, salaries are actually dropping. The report finds that salaries reduced 0.9 percent last month - the 15th consecutive drop in pay for small business employees.
Michael Alter, president of SurePayroll, says that although the increase in hiring is good news for those out of work, salaries will need to rise to help the economy rebound.
"Clearly, to truly turn the corner on this bad economy, workers will need to see a rebound in salaries," he said.
"Until that happens, don't expect much in the way of consumer spending," he continued.
But Alter points out that the good news for entrepreneurs is that this continuous drop in salary means the climate is ripe for adding employees, saying it's a "great time to buy people."
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