U.S. 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.þþBusinesses 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.þþThe 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.þþThe government's closely monitored employment report due on Friday is expected to show that payrolls rose 150,000 in May, according to a Reuters' survey, increasing from April's meager 115,000 jobs. The unemployment rate is seen steady at 8.1 percent.þþThe 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.þþBut that is equivalent to an annual salary of $32,300, meaning that many of the small business employees are working part-time.þþThe Intuit survey is based on responses from about 78,000 small businesses with fewer than 20 employees that use the Intuit Online Payroll system. It covered the period from April 23 to May 23.
Source: Chicago Tribune
