Following Economic Trends in Small Business ... New York: Employment in the Silicon Alley tech ... average annual salary
June 2013
Following Economic Trends in Small Business National Employment Report: The labor market is continuing its upward trend with June showing great job growth at 1.13%. These are some of the best numbers since January’s job growth levels of 1.10%. Hot Tech Centers Around the Country: Georgia: The tech sector saw strong job creation with net growth at 3.74% in June. The state’s efforts to court technology companies and entrepreneurs are paying off with hiring activity at 5.89% for the month. New York: Employment in the Silicon Alley tech sector got a bump in May up 2.47% as the state continues to challenge San Francisco as a hub for tech startups.
TriNet companies are expanding with hiring outpacing terminations by 1.13%. New hires are at 3.28% while terminations moved to 2.14%.
Employment Metrics *Bracketed figures denote relative change from prior month.
June Results
Total Jobs RATE
National Employment Report The labor market is continuing its upward trends with June showing great job growth at 1.13%. These are some of the best numbers since January’s job growth levels of 1.10%
1.13%
TREND (-12.1%)
RATE
Hiring Rate %
3.28
TREND (-11.7%)
Quit Rate %
Discharge Rate %
1.19
1.00
(-6.5%)
(-12.0%)
Quit Rate %
Discharge Rate %
July Forecast
Total Jobs RATE
0.83%
TREND (-26.5%)
RATE
Hiring Rate %
3.36
TREND (+2.7%)
1.52
0.99
(+28.1%)
(-0.4%)
Employment Discussion This month continues the positive hiring trend for the TriNet population. June job creation is strong, moving to 1.13% net growth. The positive hiring trend shows the economy continues to recover as the workforce expands. The total number of terminations continues to decrease as well, with voluntary separations surpassing involuntary discharges, indicating that the workforce is stabilizing and the job market is strengthening.
The TriNet population shows good growth across all industry verticals. The technology and wholesale/retail trade sectors lead the way with 1.42% and 1.36% net hiring, respectively. Likewise the BLS reported 28,000 jobs were created in the retail trade industry during May.1 Please see the Appendix for supporting charts and graphs.
In May the BLS reported a total employment increase of 175,000 jobs for the month. This marked an increase from the 149,000 jobs added in April with little change in the unemployment rate at 7.6%.1
BLS, The Employment Situation: May 2013
1
Hot Tech Sectors Around the Country The New York tech industry has generated a lot of attention recently with the sale of NY-based Tumblr to Yahoo for $1.1 billion.3 A new look at the startup scene suggests Silicon Valley isn’t the only hub for innovation. The geography of the tech startup shows San Francisco and New York beating out Silicon Valley in the number of startups established and funded.4 This pressure has prompted real estate developers to respond with techcentric spaces in Brooklyn to accommodate demand.5 The average salary for the New York tech sector is $94,000 as compared to $120,000 nationally and $143,000 in California.
Georgia: The tech sector saw strong job creation with net growth at 3.74% in June, significantly outpacing Silicon Valley’s growth of 1.31%. The state’s efforts to court technology companies and entrepreneurs are paying off with hiring activity at 5.89% for the month. A recent study found the number of tech sector job postings in Atlanta increased 27% between 2007 and 2012.1 The tech future looks bright in Georgia as the state works to provide $100 million in venture capital funding to tech startups over the next few years.2 The average annual salary for tech jobs in Georgia is at $95,000 as compared to $120,000 nationally and $143,000 in California. New York: Employment in the Silicon Alley tech sector got a bump in May up 2.47% as the state continues to challenge San Francisco as a hub for tech startups. Tech hiring in New York was 5.17% for June, outpacing Silicon Valley’s rate of 4.26%.
5.89% 5.17%
3.74%
Athens Banner Herald
2
Bloomberg.com
3
The Atlantic Cities
4
Crains New York
5
Georgia
TECHNOLOGY
93,663
2.15%
$
Metro Atlanta Chamber: Workforce Council
1
$
*Not seasonally adjusted.
95,217
2.70%
2.47%
New York
TECHNOLOGY
Appendix: Monthly Employment Metrics in Detail Chart 1: Overall Employment Trends 4.50% 4.00% 3.50% 3.00%
Hires % Hires Forecast
2.50%
Terms % Terms Forecast Net % Net Forecast
2.00% 1.50% 1.00% 0.50% 0.00% 6/12
10/12
8/12
12/12
2/13
4/13
6/13
8/13
10/13
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% 6/12
8/12
10/12
12/12
2/13
4/13
6/13
8/13
10/13
Chart 3: Industry Hiring Trends Hire % Term % Net % Average Salary
$140,000
4.50% 4.00%
$120,000
3.50% $100,000
3.00% 2.50%
$80,000
2.00%
$60,000
1.50%
$40,000
1.00% $20,000
0.50% 0.00%
Personal Services
Financial Services
Healthcare and Pharma Tech
Professional Services
Information Technology
$-
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 run from the 13th of the previous month to the 12th of the current month.1 TriNet generates payroll information by tracking real-time movements within its base of approximately 7,000+ 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. The SMBeat has slightly changed the monthly reporting cycle to end on the 12th of the month, which mirrors the methodology of the US Bureau of Labor Statistics.
1
[email protected] Ambitions Realized
