| 8/29/2019
The National Association of Professional Employer Organizations (NAPEO) today released its quarterly Small Business Snapshot showing total employment among small businesses with 1-49 employees increased by 118,000 jobs in the first quarter of 2019, with 74 percent of that growth among businesses with 20-49 employees. The report also highlights the fact that the average wage rate for small business employees rose by 2.5% over the last 12 months, while the unemployment rate decreased in 35 states.
NAPEO’s Small Business Snapshot is a quarterly compilation of data from the Bureau of Labor Statistics, ADP Employment Report, Wells Fargo/Gallup Small Business Index, Paychex Small Business Wage Data, and NAPEO that focuses on providing insight into the current state of the small business sector. Professional employer organizations provide payroll, benefits, and other HR services to some 175,000 primarily small and mid-size businesses employing 3.7 million people. The report is compiled by noted economists Laurie Bassi and Dan McMurrer of McBassi & Company.
“As providers of everything from payroll and benefits to risk management and HR services, PEOs have their fingers on the pulse of small businesses across the country and can provide important insight about the small business sector in terms of wages, employment, and potential areas of concern,” said Pat Cleary, NAPEO’s president & CEO.
“The data highlighted in the NAPEO Small Business Snapshot shows definitive strength and growth in businesses with 10-49 employees, which are the types of companies traditionally served by the PEO industry,” continued Cleary. “Clearly, the outlook is bright for both the PEO industry and the small businesses they work with.”
PEOs provide HR, payroll, benefits, workers’ comp, and regulatory compliance assistance to small and mid-sized companies. By providing these services, PEOs help businesses improve productivity, increase profitability, and focus on their core mission. Through PEOs, the employees of small businesses gain access to employee benefits such as 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits typically provided by large companies.
About NAPEO:
The National Association of Professional Employer Organizations (NAPEO) is the Voice of the PEO Industry, with a membership of 300 PEOs of all sizes and 250 industry service partners. PEOs provide payroll, benefits, regulatory compliance assistance, and other HR services to small and mid-sized companies. Through PEOs, the employees of small businesses gain access to employee benefits such as 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits typically provided by large companies. PEOs provide services to between 156,000 to 180,000 businesses employing between 2.7 and 3.4 million people and generate between $136 and $156 billion in gross revenues annually. For more information about the PEO industry and NAPEO, please visit www.napeo.org.