Following Economic Trends in Small Business. January 2013 ... and San Francisco Bay. Area technology firms increase by 1
January 2013
Following Economic Trends in Small Business SMBeat January Highlights
National Employment Report
National Employment Report: Net
Net TriNet employment levels grew 1.17% in January, over 3x the national average, and up slightly from December’s growth of 0.99%.
TriNet employment levels grew 1.17% in January, over 3x the national average, and up slightly from December’s growth of 0.99%.
Hiring Trends in Selected Markets & Verticals: In January, Southern California biotech companies see net job decrease of -2.34%, New York-based finance firms a decrease of -1.71%, and San Francisco Bay Area technology firms increase by 1.2%.
Improved hiring of 3.5% combined with steady terminations near 2.34% results in improved job growth in January.
Employment Metrics January Results
*Trend figures denote relative change from prior month.
Total Jobs RATE
1.17%
RATE
TREND (+17.2%)
Hiring Rate %
3.50
TREND (+0.8%)
Quit Rate %
Discharge Rate %
1.18
1.19
(-5.5%)
(-5.0%)
Quit Rate %
Discharge Rate %
February Forecast
Total Jobs RATE
0.95
TREND (-18.6%)
%
RATE
Hiring Rate %
3.13
TREND (-10.7%)
1.03
1.14
(-12.8%)
(-3.7%)
Employment Discussion The U.S. Bureau of Labor Statistics announced the creation of 157,000 new jobs for the US economy in January. Translated to percentage terms, this represented only a 0.34% increase over December employment levels. By contrast, TriNet member company employment levels increased 1.17%, over three-fold that of the national average.
Job creation at TriNet companies climbed 17.2% to 1.17% for January. Total terminations decreased slightly to 2.34%, split nearly evenly between 1.18% voluntary quits and 1.19% involuntary discharges. Please see the Appendix for supporting charts and graphs.
Hiring Trends in Selected Markets & Verticals In January, Southern California biotech companies see net job decrease of -2.34%, New York-based finance firms a decrease of 1.71%, and San Francisco Bay Area technology firms increase by 1.2%.
3.66%
*Not seasonally adjusted
4.55%
2.45% -2.34%
Southern Califonia BIOTECH/ LIFE SCIENCES
127,133
INFORMATION TECHNOLOGY
4.79%
$
San Francisco Bay Area
100,925
0.71%
$
$
161,620
2.95%
2.84% -1.71% New York City
BANKING/ FINANCE
Appendix: Monthly Employment Metrics in Detail Chart 1: Overall Employment Trends 4.00%
3.50%
3.00%
Hires % Hires Forecast
2.50%
Terms % Terms Forecast
2.00%
Net % Net Forecast
1.50%
1.00%
0.50%
0.00%
12/11
1/12
2/12
3/12
4/12
5/12
6/12
7/13
8/12 10/12 9/12
11/12 12/12 1/13
2/13
3/13
4/13
Chart 2: Quits vs. Discharges 1.60%
1.40%
1.20%
Vol % Vol Forecast
1.00%
Ivol % Ivol Forecast
0.80%
0.60%
0.40%
0.20%
0.00%
12/11
1/12
2/12
3/12
4/12
5/12
6/12
7/13
8/12 10/12 9/12
11/12 12/12 1/13
2/13
3/13
4/13
Chart 3: Industry Hiring Trends 3.50% Hire % Term % Net % Average Salary
3.00%
$140,000 $120,000
2.50%
$100,000
2.00%
$80,000
1.50%
$60,000
1.00%
$40,000
0.05%
$20,000
0.00%
$0 Financial Services
Information Technology
Manufacturing / Industrial
Personal Services
Professional Services
Retail / Wholesale
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 6,000 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. Slight adjustments will be made to historical figures in time series charts if and when updated employment information about actual prior periods is obtained. Any significant changes will be called out in this section. Additional details can be found on the company’s SMBeat web page trinet.com/smbeat.
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