ALEXANDRIA, Va., May 15, 2019 /PRNewswire/ -- 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. The NAPEO Small Business Snapshot for Q2 2019 is available here.
The National Association of Professional Employer Organizations (NAPEO) is The Voice of the PEO Industry™. NAPEO has some 250 PEO members that provide payroll, benefits, compliance assistance, and other HR services to 175,000 businesses employing 3.7 million people. An additional 200 companies that provide services to PEOs are associate members of NAPEO. For more information, please visit www.napeo.org.
SOURCE National Association of Professional Employer Organizations (NAPEO)