Today’s employment report provides further evidence that the economy is continuing to heal from the worst economic downturn since the Great Depression. It is critical that we continue the economic policies that are helping us to dig our way out of the deep hole that was caused by the recession that began at the end of 2007. Most importantly, we need to extend the payroll tax cut and continue to provide emergency unemployment benefits through the end of this year, and take the additional steps that President Obama proposed in his State of the Union address to create an economy built to last.

The unemployment rate fell 0.2 percentage point to 8.3%, from a high of 10% in October 2009. The drop in unemployment over the month was entirely due to employment growth, as the labor force participation rate remained constant, once new population weights are taken into account.  The unemployment rate has fallen by 0.8 percentage point in the last 12 months. Private sector payrolls increased by 257,000 jobs and overall payroll employment rose by 243,000 jobs in January. Despite adverse shocks that have created headwinds for economic growth, the economy has added private sector jobs for 23 straight months, for a total of 3.7 million payroll jobs over that period. In the last 12 months, 2.2 million private sector jobs were added on net.  Nonetheless, we need faster growth to put more Americans back to work.

Sectors with net job increases in December included professional and business services (+70,000), manufacturing (+50,000), leisure and hospitality (+44,000), health care and social assistance (+29,700), and construction (+21,000).  Government lost 14,000 jobs.

The monthly employment and unemployment numbers can be volatile, and employment estimates can be subject to substantial revision. Therefore, as the Administration always stresses, it is important not to read too much into any one monthly report; nevertheless, the trend in job market indicators over recent months is an encouraging sign.

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CLEVELAND–(EON: Enhanced Online News)–The January CBIZ
Small Business Employment Index (SBEI), a barometer for hiring trends
among companies with 300 or fewer employees, decreased by 2.75 percent
during the past month, following an increase of 1.75 percent in December.

“January’s numbers express a decline in
overall employment from December levels. Our SBEI is not seasonally
adjusted; therefore our numbers for January are consistent with January
2011, which showed a decline of 2.62 percent versus 2.75 percent for
January 2012.”

Today’s announcement follows ADP’s January jobs survey, which
illustrated that the private sector added 170,000 jobs in January.

Philip Noftsinger, business unit president for CBIZ
Payroll Services, explained, “January’s numbers express a decline in
overall employment from December levels. Our SBEI is not seasonally
adjusted; therefore our numbers for January are consistent with January
2011, which showed a decline of 2.62 percent versus 2.75 percent for
January 2012.”

Additional take-away points from the January data include:

• At-a-glance: Of the companies surveyed, the data shows that 34
  percent reported a decrease in employee headcount while 18 percent
  increased staffing. 48 percent of the companies involved in the survey
  maintained their number of employees.
• Small business sector: A decline in hiring after the holiday
  season is to be expected as normal seasonal activity. Many business
  owners are still reluctant to bring on new employees due to continued
  uncertainty surrounding the economy.
• What-to-watch: We need to continue to see positive macro data
  to support the ongoing trend of mild job growth that we experienced in
  the fourth quarter of 2011. Prolonged job creation will
  ultimately depend on employer confidence and consumer spending.

“Thus far, we are seeing 2012 open up very similar to 2011. Data over
the next few months should be watched closely in order to see if we can
sustain positive movement into the coming year,” said Noftsinger.

Currently, CBIZ Payroll Services manages payroll services for more than
3,000 businesses that employ fewer than 300 people. The sample reflects
a broad array of industries and geographies corresponding to the markets
across the United States where CBIZ provides services.

For a month-by-month illustration of the Small Business Employment
Index, please
click here.

Editor’s note: The United States Department of Labor’s Bureau
of Labor Statistics Employment Situation Summary is due to be released
on Friday, February 3, at 8:30 a.m. Mr. Noftsinger is available
for media interviews to discuss employment trends and other payroll
matters impacting the American business environment.

About CBIZ,
Inc. (NYSE:CBZ)

CBIZ, Inc. provides professional business services that help clients
better manage their finances and employees. CBIZ provides its clients
with financial services including accounting, tax and consulting,
internal audit, merger and acquisition advisory and valuation services.
Employee services include employee benefits consulting, property and
casualty insurance, retirement plan consulting, payroll, life insurance,
HR consulting and executive recruitment. CBIZ also provides outsourced
technology staffing and support services, healthcare consulting and
medical practice management. As one of the largest benefits specialists
and one of the largest accounting, valuation and medical practice
management companies in the United States, the company’s services are
provided through more than 140 company offices in 36 states.

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