Small Business Hiring Eases

By rolling back wages, smaller employers continued to create jobs in October, payroll data shows.

Despite the slumping economy, small employers continued hiring new workers in October, though at a slower pace  than in recent months, payroll data shows.

According to SurePayroll, a Chicago-based small business payroll firm, small business employment grew by 0.28 percent in October, driven by steady hiring by employers based in the Midwest, Northeast and South. By contrast, employment declined at small businesses in the West.

At the same time, small-business salaries fell by 0.39 percent, following a 0.51 percent decline in September, the report said.

To date, small business employment has grown by three percent nationwide, while average paychecks  have dropped by 2.2 percent to $31.893.

SurePayroll expects small business hiring growth to settle at 2.9 percent for the year, with weaker growth heading into December.

"Growth in the last two months is down relative to the prior two months of July and August," Michael Alter, the firm's president, said in a statement. "It appears that the end may be near for small business growth."

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