Small Businesses Hire Fewer Workers and Cut Hours

Small businesses hired fewer workers in May and cut hours for those on their payrolls, an independent survey showed on Wednesday, raising prospects of another disappointing employment report.

Businesses added 40,000 new jobs, after increasing payrolls by an upwardly revised 60,000 jobs in April, according to Intuit, a payrolls processing firm. April's job count was previously reported as 40,000. The survey's findings contradict expectations of a pick-up in job gains in the broader economy this month as the weather-related distortions that held back employment growth in March and April dissipate.

The Intuit survey showed the average workweek for small business employees slipped 0.13 percent in April, leading to a 0.13 percent or $4 decline in the average monthly pay to $2,692. But that is equivalent to an annual salary of $32,300, meaning that many of the small business employees are working part-time.  Read more >>