In December, employment activity on Main Street held steady compared to earlier in the fall. Headcount for hourly teams remained consistent, with little change in the rate of worker turnover and job creation.

For the first time in months worker wages have frozen after trending downward since August.

NOTEWORTHY

• Small business teams contracted more after Thanksgiving this year than in prior years, though December employment activity was in line with preceding months. Retail and entertainment saw the smallest dip.
• Job turnover and creation remained relatively consistent with prior months this year, indicating small businesses had the holiday headcount they needed.
• In December, hourly worker wages froze for the first time in months following a consistent downward trend in growth since August.

December employment activity held steady month over month

The monthly change in employees working and hours worked was bigger in December than in prior years, but held relatively consistent with prior months in 2023.

Employees working

(Monthly change in 7-day average, relative to January of reported year)

Hours worked

(Monthly change in 7-day average, relative to January of reported year)

Data compares rolling 7-day averages for weeks encompassing the 12th of each month; April data encompasses the subsequent week to account for Easter holiday. Source: Homebase data.

A regional view reveals the Eastern Seaboard saw biggest decline

Colder states in the Northeast had the greatest dip in hours worked, businesses open and employees working on Main Street in December.

Output by Region

Month-over-month change in core economic indicators, by Census region

Note: December 10-16 vs. November 12-18. Region classification – Midwest: ND, SD, NE, KS, MN, IA, MO, WI, IL, IN, OH, MI; West: NV, UT, AZ, NM, CO, WY, MT, ID, OR, WA, CA, HI, AK; Northeast: NY, PA, NJ, CT, RI, MA, NH, VT, ME; Southeast: MS, AL, TN, KY, NC, SC, GA, FL; Southwest: TX, OK, AR, LA.  Source: Homebase data.

Main Street saw varied employment activity in cities coast to coast

In descending order, Sacramento, Birmingham and St. Louis saw the biggest gains in employment activity, with Providence, Oklahoma City and Hartford bringing up the rear.

Output by MSA

Month-over-month change in core economic indicators, by metropolitan statistical area

Note: December 10-16 vs. November 12-18. Source: Homebase data

Across industries, employees working dipped below prior years

2023 saw a greater decline in employees working by industry than in 2022 and 2019. Retail and entertainment held steady month over month, as they worked to meet holiday demand.

Small businesses in the retail and entertainment sectors saw the most muted declines compared to the prior month (-0.2% and -0.4%, respectively). 

Home & repair businesses saw the greatest month over month drop off (-5.3%), a significant change from prior years. This could be due to more suitable outdoor working conditions in early fall than December.

Percent change in employees working

(Mid-December vs. mid-November, using Jan. ‘19, Jan. ‘22, and Jan. ‘23 baselines)1

1. December 8-14 vs. November 10-16 (2019); December 11-17 vs. November 6-12 (2022); December 10-16 vs. November 12-18 (2023). Source: Homebase data

Worker wage growth halted over the holiday season

December marks a wage standstill following a consistent downward trend in the rate of growth since August.

Avg. wage changes, m/m

Monthly change in average hourly wages across all jobs

Note: Data measures average hourly wages for locations that utilized Homebase to pay employees in both December 2022 and December 2023. Total incl. industries not depicted here. Source: Homebase Payroll data.

Main Street moved through the holidays with minimal turnover

The rate of jobs removed at small businesses was consistently low through all of fall. Hourly teams navigated the holiday season with relatively stable headcount.

m/m changes in average number of jobs removed

Monthly change in average jobs archived across all jobs

Note: Data measures average monthly change in total number of jobs removed, whether by voluntary or involuntary exit, from official employee rosters for companies active in any given month. Source: Homebase data.

Small businesses did most of their seasonal hiring in early fall

As consumers started their holiday shopping earlier in 2023 than 2022, small business owners also hired most of their seasonal workers in early fall with job creation dipping in December.

m/m changes in average jobs created

Monthly change in average number of jobs added across all jobs

Note: Data measures average monthly change in total number of jobs created in official employee rosters for companies active in any given month. Source: Homebase data.

Link to PDF of: December 2023 Main Street Health Report. If you choose to use this data for research or reporting purposes, please cite Homebase.

The post Worker wages hold as Main Street rings in 2024 with stability appeared first on Homebase.

Homebase, the all-in-one team management app, released results from their latest holiday spending survey from nearly 500 small business owners nationwide on the end-of-year shopping season. Top-level findings from the survey include:

• Early bird gets the… sale? Holiday shopping is starting earlier and earlier, even compared to 2022, according to 40% of respondents, extending the end of year shopping season for small businesses. 
• Small business customers defy the tipping trend. As the conversation around tip prompts continues, customers at small businesses don’t seem fazed as nearly half of small businesses (40.9%) are seeing tipping during the holiday season consistently increase since 2022.
• Shopping small doesn’t mean small ticket items. About half of small business customers spend between $51-249 during the holiday season, with nearly 25% spending more than $500 in one visit.
• Are local restaurants being left out of the holiday cheer? Holiday sales account for up to 20% of total yearly sales for over 25% of small business owners compared to 37% of respondents in food & bev who said holiday sales are only 5-10% of their annual revenue.
• This holiday season will have major implications for their future:  Almost 35% of small businesses say the holidays will have a major impact on their ability to stay in business in 2024.

“Thus far, the holiday surge has given small business owners a confidence boost ahead of the new year,” said Homebase Co-Founder and CEO John Waldmann. “For many small business teams, a strong holiday season is how they can enter the New Year on stable financial footing. Fortunately, our data paints a rosy picture for Main Street for 2023: businesses have seen holiday shopping start earlier in the year, and teams have seen customer tip rates increase from 2022. We’re encouraged by this spending and show of consumer confidence in shopping small for the holidays; it strengthens local business teams and the communities they serve.”

Homebase services over 100,000 small businesses and 2M hourly workers across the U.S., providing the tools they need to serve their customers and local communities better. A national online survey of over 500 self-employed individuals with more than one employee was conducted in November of 2023. 

About Homebase

Great businesses are built on great teams. Great teams are built on Homebase. Homebase makes work easier for 100,000+ small (but mighty) businesses with everything they need to manage hourly teams: employee scheduling, time clocks, payroll, team communication, hiring, onboarding, and compliance. Just don’t call us “Human Capital Management.” We’re one do-it-all app built for the busiest businesses, so owners and employees can spend less time on bullsh*t and more time on what matters.

The post Homebase’s Holiday Survey Reveals Impact of End of Year Sales on Main Street appeared first on Homebase.

Meanwhile, worker wages continued to rise despite easing inflation and cooling consumer prices. Could we be nearing the end of the wage climb? 

Noteworthy trends this month:

• Despite flattening inflation and cooling prices, worker wages continued to grow on Main Street in November.
• Winter typically brings a major small business slowdown, but this year sees increasing wages, low employee turnover, and steadier employment activity than years past.
• Caregiving and Beauty & Wellness were standout sectors. Both saw gains in employees working in November (2.4% and 1%, respectively), when prior years showed declines for the same period.

Entering winter, employment activity on Main Street has been stronger than in pre-pandemic years 

There was less of a decline in employees working and hours worked this year than in 2022 or 2019.

Employees working

(Monthly change in 7-day average, relative to January of reported year)

Hours worked

(Monthly change in 7-day average, relative to January of reported year)

Data generally compares rolling 7-day averages for weeks encompassing the 12th of each month; April 2023 data encompasses subsequent week to account for Easter holiday. Source: Homebase data.

Southern states, as expected, are the least impacted by winter

All regions are showing lower winter-driven reductions in employment activity than previous years

Output by Region

Month-over-month change in core economic indicators, by Census region

Note: November 12-18 vs. October 8-14. Region classification – Midwest: ND, SD, NE, KS, MN, IA, MO, WI, IL, IN, OH, MI; West: NV, UT, AZ, NM, CO, WY, MT, ID, OR, WA, CA, HI, AK; Northeast: NY, PA, NJ, CT, RI, MA, NH, VT, ME; Southeast: MS, AL, TN, KY, NC, SC, GA, FL; Southwest: TX, OK, AR, LA.  Source: Homebase data

Changes in employment activity varied across major MSAs

MSA-specific patterns reflect the regional differences highlighted above (stronger activity in the South)

Output by MSA

Month-over-month change in core economic indicators, by metropolitan statistical area

Note: November 12-18 vs. October 8-14. Source: Homebase data

Winter employment activity strength consistent across all industries, with a couple very strong outliers

Caregiving and Beauty & Wellness both saw an increase in employees working in November, in spite of historical dips. Across most other industries, there were lower than expected declines.

Caregiving and Beauty & Wellness both saw strong gains in employees working, increasing in November for the first time since 2019 (2.4% and 1%, respectively).

Entertainment and Hospitality both saw less of a decline in employees working than in prior years (-6.6% and -8.6%, respectively). This is also true of Retail, Food & Drink, and Home & Repair.

Percent change in employees working

(Mid-November vs. mid-October, using Jan. ‘19, Jan. ‘22, and Jan. ‘23 baselines)1

1. November 10-16 vs. October 6-12 (2019); November 6-12 vs. October 9-15 (2022); November 12-18 vs. October 8-14 (2023). Source: Homebase data

Worker wages continued to rise in November

Despite easing inflation and a steadying of consumer prices, Main Street workers wages rose in November.

Avg. wage changes, m/m

Monthly change in average hourly wages across all jobs

Note: Data measures average hourly wages for locations that utilized Homebase to pay employees in both November 2022 and November 2023. Total incl. industries not depicted here. Source: Homebase Payroll data.

November showed the lowest employee turnover of 2023

This signals strength as businesses head into winter, and reflects the high employee satisfaction numbers we’ve recently reported

m/m changes in average number of jobs removed

Monthly change in average jobs archived across all jobs

Note: Data measures average monthly change in total number of jobs removed, whether by voluntary or involuntary exit, from official employee rosters for companies active in any given month. Source: Homebase data.

Given high employee retention, main street has been able to slow their pace of hiring

This is a positive development given the cost of hiring and benefits of longer-tenured team members

m/m changes in average jobs created

Monthly change in average number of jobs added across all jobs

Note: Data measures average monthly change in total number of jobs created in official employee rosters for companies active in any given month. Source: Homebase data.

For a PDF of our November 2023 report, please visit this link; if you choose to use this data for research or reporting purposes, please cite Homebase.

The post November Main Street Health Report: Small businesses are entering the holidays on firm footing. appeared first on Homebase.

Main Street activity steadies to pre-pandemic levels, as workers feel increasingly secure at work and concerns over the economy decline.

This improvement signals Main Street is heading towards a strong holiday season, which will set them up for the New Year.

While the Fed deliberate rate hikes, Main Street is stabilizing in line with prior years, marking a turning point in economic stability. Meanwhile, small business teams are more confident about the health of their businesses. Homebase seeks to understand how the broader economic environment is affecting small businesses and their employees during October by analyzing behavioral data from more than two million employees working at more than one hundred thousand SMBs.

Main Street at a glance:

While inflation remains top of mind, economic anxieties among hourly workers dipped in October. Data showed reduced concern around inflation, a possible recession and unemployment. Workers feel more confident and secure in their jobs.

The past three years have tested Main Street, but we’re seeing improvements and a return to normalcy. Core indicators, like employees working and hours worked, are finally returning to pre-pandemic levels.

• Continued wage inflation has the majority of workers satisfied with their compensation. Non-wage factors, like schedule flexibility and team relationships, are top motivators for deciding where to work for most hourly employees.
• Core indicators show an expected October slowdown in employment activity across industries. Entertainment, specifically, has gained stability, steadying to pre-pandemic levels.
• Workers are less worried about the economy, signaling confidence in Main Street activity and job security. Most workers note the rising cost of goods, yet concerns over inflation dipped.

Core indicators revealed Main Street labor market steadied in October

In October, employees working and hours worked saw expected seasonal dips in line with pre-pandemic levels.

Employees working

(Monthly change in 7-day average, relative to January of reported year)

Hours worked

(Monthly change in 7-day average, relative to January of reported year)

Data compares rolling 7-day averages for weeks encompassing the 12th of each month; April data encompasses the subsequent week to account for Easter holiday. Source: Homebase data.

SMBs in key regions defied seasonal dip, driving growth in October

Riverside, Las Vegas, Birmingham, Miami and Portland saw an increase in hours worked and employees working, while the rest of the country declined.

Output by MSA – Month-over-month change in core economic indicators, by metropolitan statistical area

Note: October 8-14 vs. September 10-16. Source: Homebase data

Most industries showed a return to pre-pandemic rates of employees working trends 

After a strong September, Entertainment posted a comfortable decline for October relative to 2019, signalling the return to a steady rhythm.

Percent change in employees working

(Mid-October vs. mid-September, using Jan. ‘19, Jan. ‘22, and Jan. ‘23 baselines) 3

Entertainment continues to show signs of a return to pre-pandemic levels in the rate of employees working. September, saw a more muted end of summer decline than prior years, and now October data shows stability has returned to 2019 levels.

In fact, most industries across the board are showing a seasonal dip in employees working in line with pre-pandemic years. This could signal a turning point in economic stability on Main Street.

1. Hospitality includes tourism and hotel/lodging businesses.
2. Entertainment includes events/festivals, sports/recreation, parks, movie theaters, and other categories. 
3. October 6-12 vs. September 8-14 (2019); October 9-15 vs. September 11-17 (2022); October 8-14 vs. September 10-16 (2023). Source: Homebase data

Wages at small businesses continued to grow in October

Entertainment saw a spike coming into October but then stabilized, while total wage changes continued on an upward trend.

Avg. wage changes, m/m

Monthly change in average hourly wages across all jobs

Note: Data measures average hourly wages for locations that utilized Homebase to pay employees in both October 2022 and October 2023. Total includes industries not depicted here.  Source: Homebase Payroll data.

Hourly Worker Pulse Check

Workers are hopeful but uncertain about the future

Over a third of workers think job opportunities will improve one year down the line. As many as 21%, up from 19% in August, are uncertain about future prospects.

While uncertainty remains, a modest rebound in positivity shows workers are cautiously optimistic about activity and potential for work on Main Street.

Survey question: Do you think your job options will be better, about the same, or worse in 12 months compared to today?

Source: Homebase Employee Pulse Survey

N = 873 (Feb. ‘23); N = 666 (Apr. ‘23); N = 611 (Jun. ‘23); N = 427 (Aug. ‘23); N = 437 (Oct. ‘23)

Economic concerns declined for workers

While workers are still worried about the likelihood of a recession and inflation, their fears are lessening. In October, 53% of hourly workers reported being concerned about inflation, a decrease of 11% from August. Fears around a recession also dropped 10% in October compared to August. 

Economic fears are being replaced by more personal fears. In October, 48% of hourly workers reported concerns over non-work-related stresses, up from 44% in August.  

Source: Homebase Employee Pulse Survey. N = 666 (Apr. ‘23); N = 611 (Jun. ‘23); N = 427 (Aug. ‘23); N  = 437 (Oct. ‘23)

Non-wage factors like schedule flexibility and team relationships are top motivators for workers

Wages remain important but take third place, all while economic concerns soften for workers.

Since May, wage growth has impacted hourly worker priorities, with schedule flexibility and team relationships consistently ranking above wages.

Source: Homebase Employee Pulse Survey. N = 666 (Apr. ‘23); N = 611 (Jun. ‘23); N = 427 (Aug. ‘23); N = 437 (Oct. ‘23)

Job satisfaction on Main Street has increased since August

As many as 4 out of 5 hourly workers agree they’re happy with their jobs overall. 

81% of workers surveyed saw an increase in the cost of household goods and services. Despite that, their outlook on wages has remained generally consistent. In October 2023, 55% of hourly workers at small businesses said they were satisfied with their compensation.

Source: Homebase Employee Pulse Survey

N = 873 (Feb. ‘23); N = 666 (Apr. ‘23); N = 611 (Jun. ‘23); N = 427 (Aug. ‘23); N = 437 (Oct. ‘23)

Despite consistent work over the past 3 months, employees expect work to pick up for the holidays

Workers are confident that the holidays will bring business, and with it, higher paychecks.

Source: Homebase Employee Pulse Survey. N = 437 (Oct. ‘23)

Link to PDF of: October 2023 Main Street Health Report. If you choose to use this data for research or reporting purposes, please cite Homebase.

The post Main Street Steadies as Workers Gain Confidence appeared first on Homebase.

• Homebase ushers in an era of fully automated payroll powered by AI that’s zero-click, instantaneous, and error-free, replacing dated payroll systems that fail today’s small businesses.
• Payday becomes any day for hourly workers, as more and more reject the two-week pay cycle and opt for on-demand earned wages to keep up with regular expenses.
• Unprecedented transparency will be the norm for small business owners anticipating labor costs and for workers tracking bills, earnings over time, and taking control of their financial well-being.

San Francisco, October 19, 2023 – Homebase, the all-in-one team management app that helps more than 100,000 local, small businesses manage their hourly teams, is opening the door to the future of pay for Main Street with an updated suite of powerful payday tools that radically reimagine dated payroll systems. This comes on the heels of a new, small business payday study by the company signaling the death of the paycheck as we know it by the end of 2024. These innovations mark a new era of pay.

Homebase wants small businesses to stop running payroll.

Homebase Payroll brings innovation and automation to outdated payroll processes at a time when small businesses need it most. The company’s payday study revealed that traditional payroll systems continue to fail small businesses, costing them time and money. 

• Today, 76% of employers have made miscalculations running payroll.
• 63 hours is the average amount of time a small business owner spends each year running payroll; 31% say time spent on payroll could be better spent growing their business.

Homebase is completely reimagining payroll for small businesses—especially those facing the complexity of managing hourly employees—by integrating time-tracking and payroll in one place. This saves small businesses from wasted time and errors because they don’t have to transfer critical data between systems or do manual calculations with every payroll run. And with fully automated payroll and tip-pooling coming soon, small businesses will never have to “run” payroll again.  

“Homebase Payroll is the complete package, including the extremely helpful support staff. It’s very user-friendly and it makes payday a breeze for me and for my workers,” said Joseph Marino, Owner of Max Protection Moving LLC.

Homebase empowers workers to do payday their way. 

The traditional, two-week pay cycle doesn’t line up with the needs of today’s hourly worker. Bills, rent, daily essentials, and emergency expenses can’t wait for their next payday, leading workers to take out risky payday loans or to go into overdraft on their bank accounts just to make ends meet.

• Right now, 75% of hourly workers are paid biweekly, but 55% would opt for more frequent payments if given the choice.
• More than 1 in 10 have paid more than $500 in the past year to cover payday loan repayments, interest charges, or cash advance and overdraft fees.
• Nearly half (45%) of hourly workers say a no-interest, on-demand pay option from their employer would help them to manage their finances better.

To help small businesses take care of their people, Homebase offers hourly workers on-demand access to their earned wages, with tools like Cash Out or the recently released Homebase Pay Any Day Visa Debit Card¹. Immediately after an employee clocks out from their shift, they can access the wages they’ve just earned for free (i.e. no fees or interest for the employee, and no cost or liability to the employer). This puts financial control back in the hands of hourly workers. 

Homebase brings total transparency to small business owners and workers alike.

The complexities of hourly teams make it difficult for small businesses to accurately forecast labor costs and plan staffing. For hourly workers whose schedules can change weekly or who rely on tips, every paycheck can be a different amount, making it difficult to plan for expenses.

• 66% of small business owners have reviewed employee timesheets and found errors that had to be corrected, costing them precious time and resources.
• 28% of employees say their financial stress is a distraction for them at work.

By connecting all parts of team management, from scheduling to timesheets to payroll, Homebase’s predictive modeling enables owners to more accurately plan for labor costs. For hourly workers, Homebase offers a complete financial picture, with the earnings tab and the newly launched bill tracking, all in one app. They are able to plan ahead, predict earnings and expenses, and adjust for shortfalls—removing a key source of financial stress. 

“This is about more than just new technology. We’re reimagining payday for Main Street from the ground up,” said Homebase Founder & CEO, John Waldmann. “We’re proud to usher in a new era of pay for Main Street that delivers the best possible pay experience to small business teams,” said Waldmann.

¹Issued by Piermont Bank.

Study Methodology:

From August 31 to September 8, 2023, Homebase conducted a comprehensive study made up of two surveys, which gathered first-hand insights from over 850 hourly workers and 500 small business owners based in the U.S. Key findings are available here.

The post Homebase Redefines Payday for Small Business Teams appeared first on Homebase.

This comes amid peak interest rates and a narrowly-avoided government shutdown. But what’s happening on Main Street?

Amid multiple strikes, a near government shutdown and high interest rates, Main Street businesses grapple with their own unique realities on-the-ground. September saw rising wages, New York City flooding, and seasonal slowdowns. Homebase seeks to understand how the broader economic environment is affecting small businesses and their employees during the end of Q3 by analyzing behavioral data from more than two million employees working at more than one hundred thousand SMBs.

Main Street at a glance:

Hourly workers join the “Big Stay”— opting to stay in their jobs for longer— as wages rises, employee turnover takes a dive, and optimism on future jobs declines.

Plus, last weekend’s extreme rainfall and flooding hit New York City SMBs hard. But the very next day, these tough teams were back in business at almost normal levels.

New and noteworthy:

• Main Street worker wages continued to rise in September, despite a decision by the Federal Reserve Bank to pause interest rates, as inflation appears to cool.
• Most industries saw a seasonal dip in employees working in September, though Hospitality and Entertainment at a lesser rate than prior years.
• Foot traffic for small businesses in NYC dropped over the weekend, as heavy rainfall caused severe flooding, resulting in a state of emergency.

Persistent wage growth continued in September on Main Street

Summerlong wage inflation continued for workers. Labor costs rose as owners continued to invest in attracting and retaining teams amid inflation uncertainty.  

Avg. wage changes, m/m

Monthly change in average hourly wages across all jobs

Note: Data measures average hourly wages for locations that utilized Homebase to pay employees in both September 2022 and September 2023. Total includes industries not depicted here.  Source: Homebase Payroll data.

SMBs saw seasonal September slowdown

Hours worked saw a steeper decline than employees working, signaling workers received fewer hours as summer ends and foot traffic falls. 

Employees working

(Monthly change in 7-day average, relative to January of reported year)

Hours worked

(Monthly change in 7-day average, relative to January of reported year)

Data compares rolling 7-day averages for weeks encompassing the 12th of each month; April data encompasses the subsequent week to account for Easter holiday. Source: Homebase data.

Fewer employees worked in September, in line with expectation

Most industries saw a seasonal dip in employees working, though Hospitality and Entertainment saw a more muted decline in 2023 than prior years.

Both Hospitality¹ and Entertainment² saw a seasonal decline in employees working in September, but at a lesser rate than previous years (-12.7% and -18.2%, respectively).

Across both industries, less staffing up early in the summer meant a softer declines in September. Although, Entertainment saw a more pronounced change in employees working on either sides of summer, likely due to outdoor events benefiting from warmer weather.

Percent change in employees working

(Mid-September vs. mid-August, using Jan. ‘19, Jan. ‘22, and Jan. ‘23 baselines)³

1. Hospitality includes tourism and hotel/lodging businesses.
2. Entertainment includes events/festivals, sports/recreation, parks, movie theaters, and other categories. 
3. September 8-14 vs. August 11-17 (2019); September 11-17 vs. August 7-13 (2022); September 10-16 vs. August 6-12 (2023). Source: Homebase data

New York’s SMBs were hard hit by emergency rainfall and flooding, but these tough teams bounced back almost immediately

Heavy rains in the New York area forced widespread shutdowns, and SMBs felt the impact directly on Friday. However, we saw an immediate recovery Saturday, as activity levels outpaced the prior week and jumped more than other large metro areas.

Employees working

(Weekly change in metrics, relative to January 2023 levels)

Hours worked

(Weekly change in metrics, relative to January 2023 levels)

Businesses open

(Weekly change in metrics, relative to January 2023 levels)

Note: Data compares changes in relative activity levels versus prior week (i.e., Thursday 9/28 vs. Thursday 9/21).  Source: Homebase data.

Main Street sees seasonal fall slowdown

The Northeast saw the greatest dip in employment activity, as summer came to a close.

Output by MSA

Month-over-month change in core economic indicators, by metropolitan statistical area

Note: September 10-16 vs. August 6-12. Source: Homebase data

Hiring dipped as summer transitioned into back-to-school

m/m changes in average jobs created

Monthly change in average number of jobs added across all jobs

Note: Data measures average monthly change in total number of jobs created in official employee rosters for companies active in any given month. Source: Homebase data.

Turnover rates at SMBs dropped sharply in September

m/m changes in average number of jobs removed

Monthly change in average jobs archived across all jobs

Note: Data measures average monthly change in total number of jobs removed, whether by voluntary or involuntary exit, from official employee rosters for companies active in any given month. Source: Homebase data.

Employees worked fewer shifts on average heading into the fall

m/m changes in average number of shifts

Monthly change in average shifts worked across all jobs

Note: Data measures average monthly change in total clock-ins for companies active in any given month. Source: Homebase data.

Link to PDF of: September 2023 Homebase Main Street Health Report If you choose to use this data for research or reporting purposes, please cite Homebase.

The post Main Street Workers Join The ‘Big Stay’ appeared first on Homebase.

Most small business hourly workers are satisfied with their jobs and pay, as new priorities like schedule flexibility and team relationships top the list. Workers are less optimistic about future prospects, as inflation worries increase.

NEW AND NOTEWORTHY:

• Main Street wages continued to rise in August, despite salary cuts across big industries like technology and transportation, showing that small businesses are still battling the labor shortage.
• Hospitality saw only a slight dip in employees working as teams thinned towards end of summer while still supporting greater demand than prior years.
• Consistent summer wage growth has impacted worker priorities, with employees now valuing schedule flexibility & control and team relationships over wages.
• Inflation remains a top concern for hourly workers (more than 3x more than losing one’s job). Longer working hours have also been an increasing worry.

Summer slowdown has begun, in line historical seasonal trends.

The number of employees working and hours worked dropped from July at the same rate as prior years.

Employees working

(Monthly change in 7-day average, relative to January of reported year)

Hours worked

(Monthly change in 7-day average, relative to January of reported year)

Data compares rolling 7-day averages for weeks encompassing the 12th of each month; April data encompasses the subsequent week to account for Easter holiday. Source: Homebase data.

Impacts of the July heat dome have cooled.

Reductions in employees working are no longer concentrated in the South. 

Output by MSA

Month-over-month change in core economic indicators, by metropolitan statistical area

Note: August 6-12 vs. July 9-15. Source: Homebase data

However, the Lahaina fire has affected much of Maui’s Main Street.

August’s devastating fires in Lahaina destroyed local businesses and forced many others to close their doors and focus on safety and recovery. Outside of Lahaina, calls for tourism to continue in outlying towns, like Kihei and Wailea, encourage visitor foot traffic for local businesses that are trying to keep their doors open and teams gainfully employed.

Employees working

(Monthly change in 7-day avg, relative to January 2023)

Hours worked

(Monthly change in 7-day avg, relative to January 2023)

Businesses open

(Monthly change in 7-day avg, relative to January 2023)

Note: Data encompasses businesses that operates in the census-designated places (CDPs) of Kihei, Wailea, and Lahaina.  Source: Homebase data.

Fewer employees working is driven by the transition from summer vacations to back-to-school (and work).

Hospitality businesses saw leaner teams in August than midsummer, but needed more workers to support greater demand than prior years.

This year, Hospitality1 saw only a slight dip in employees working in August, which is much less than in prior years. This is likely due to early summer labor shortages, which meant lower hiring in June and July and thus smaller team reductions in August (compared to previous years).

Entertainment2 saw a stark but expected decline in employees, as the need for outdoor activities slowed in line with prior years.

Percent change in employees working

(Mid-August vs. mid-July, using Jan. ‘19, Jan. ‘22, and Jan. ‘23 baselines) 3

1. Hospitality includes tourism and hotel/lodging businesses.
2. Entertainment includes events/festivals, sports/recreation, parks, movie theaters, and other categories. 
3. August 11-17 vs. July 7-13 (2019); August 7-13 vs. July 10-16 (2022); August 6-12 vs. July 9-15 (2023). Source: Homebase data

Wages at small businesses grew even more in August than July.

Small businesses continue raise staff wages to retain seasoned teams in the face of labor shortages.  

Avg. wage changes, m/m

Monthly change in average hourly wages across all jobs

Hourly Employee Pulse Check

Hourly workers are less optimistic about future job options.

Even as wages continue to grow and labor remains tight on Main Street, worker optimism is decreasing and uncertainty is gradually on the rise. This is likely driven by general economic instability or stories in the media.

34% of hourly workers think their job options will be better in 12 months. This rate has been steadily declining since July 2022 when it was at 42%.

Survey question: Do you think your job options will be better, about the same, or worse in 12 months compared to today?

Source: Homebase Employee Pulse Survey

N = 873 (Feb. ‘23); N = 666 (Apr. ‘23); N = 611 (Jun. ‘23); N = 427 (Aug. ‘23)

Workers are 3x more concerned about inflation than losing their jobs. 

Inflation remains a top concern in 2023, as the cost of living rises. In August, 64% of hourly workers reported being concerned about inflation, an increase of nearly 10% from June.

Longer working hours for employees also appear to be on the rise. Workers are more worried about increased hours (23% in August, up from 19% in June), and are less worried about reduced hours (29% in August, down from 33% in June).

Source: Homebase Employee Pulse Survey. N = 666 (Apr. ‘23); N = 611 (Jun. ‘23); N = 427 (Aug. ‘23)

Job satisfaction on Main Street is consistently high.

As many as 4 out of 5 hourly workers agree they’re happy with their jobs overall. 

Their outlook on wages has remained generally consistent. In August 2023, 54% of hourly workers at small businesses said they were satisfied with their compensation.

Source: Homebase Employee Pulse Survey

N = 873 (Feb. ‘23); N = 666 (Apr. ‘23); N = 611 (Jun. ‘23); N = 427 (Aug. ‘23)

It’s about more than just money, say hourly workers. 

Flexibility & schedule control and team relationships are the most important factors for employees.

Since May, wage growth has impacted hourly worker priorities, with schedule flexibility and team relationships consistently ranking above wages.

Source: Homebase Employee Pulse Survey. N = 666 (Apr. ‘23); N = 611 (Jun. ‘23); N = 427 (Aug. ‘23)

For workers who receive tips, they are a critical component of compensation. 

Source: Homebase Employee Pulse Survey. N = 427 (Aug. ‘23)

Link to PDF of: August 2023 Homebase Main Street Health Report. If you choose to use this data for research or reporting purposes, please cite Homebase.

The post Summer slows down as wages tick up appeared first on Homebase.

Homebase data reveals that small businesses continue to battle labor shortages by increasing wages— even as summer slow downs and heat waves slow business.

The Fed has resumed its wage hikes amid seasonal dips in employment activity on Main Street. Meanwhile, small businesses owners are tackling the labor shortage with wage increases for workers, while extreme heat hampers consumer spending in the South and Southwest. Homebase seeks to understand how the broader economic environment is affecting small businesses and their employees during the beginning of Q3 by analyzing behavioral data from more than two million employees working at more than one hundred thousand SMBs.

Summary of findings: Main Street businesses seeing an expected seasonal dip in activity for summer. Team growth slows as wages increase.

• Small businesses saw an expected seasonal dip in people working.
• Entertainment and Hospitality grew their teams but less than in previous years, while Retail and Food & Drink declined more than in previous years.
• It’s too hot to work in the South and Southwest amid the heat waves.
• Hourly wages increased again—and even more aggressively than in June—led by summer demand in entertainment.

Summertime means less activity for Main Street businesses.

Small businesses saw an expected dip in July in people working and hours worked. This is a consistent seasonal trend every year.

Employees working

(Monthly change in 7-day average, relative to January of reported year)

Hours worked

(Monthly change in 7-day average, relative to January of reported year)

Data compares rolling 7-day averages for weeks encompassing the 12th of each month; April data encompasses the subsequent week to account for Easter holiday. Source: Homebase data.

But this year, it really is too hot to work. 

Extreme heat in the South disrupted consumer habits, reduced foot traffic, and translated into people working less.

Note: July 6-12 vs. June 11-17. Source: Homebase data

Slower than expected team growth this year as many small businesses still face labor shortages and rising wages.

Entertainment¹ and Hospitality increased their teams sizes from June to July, but the growth was far less than in prior years for the same period.

Food & Drink and Retail saw modest declines in employees working from June to July, but these declines were larger than in prior years.

Percent change in employees working

(Mid-July vs. mid-June, using Jan. ‘19, Jan. ‘22, and Jan. ‘23 baselines) ²

1. Entertainment includes events/festivals, sports/recreation, parks, movie theaters, and other categories.
2. July 7-13 vs. June 9-15 (2019); July 10-16 vs. June 12-18 (2022); July 6-12 vs. June 11-17 (2023). Source: Homebase data

Wage growth re-accelerated, driven by demand in Entertainment.

Note: Data measures average hourly wages for locations that utilized Homebase to pay employees in both July 2022 and July 2023. Total includes industries not depicted here.  Source: Homebase Payroll data.

Link to PDF of: July 2023 Homebase Main Street Health Report If you choose to use this data for research or reporting purposes, please cite Homebase.

The post Too Hot to Work: Jobs Dip as Temperatures Climb appeared first on Homebase.

Homebase data reveals a summer upswing for small businesses, as employment activity grows, wages rise, and employees log more consistent hours.

In economic conditions where forecasts and expectations can change seemingly daily, real-time data on activity across North American businesses shows that warmer weather is bringing shoppers and diners out and about. Homebase seeks to understand how the broader economic environment is affecting small businesses and their employees during the beginning of Q2 by analyzing behavioral data from more than two million employees working at more than one hundred thousand SMBs.

Summary of findings: Main Street job growth sees seasonal boom with outdoor activity in full swing, as longer days translate to more hours for small business employees.

• Employment activity is up on Main Street, but trailing behind historical trends. Employees are working longer shifts to meet demand.
• Employment growth varies across industries. Entertainment saw a massive increase from May to June (22.3%), in-line with prior years. Hospitality saw a jump (8.8%) that lagged previous years’ huge spikes.
• Summer weather is in full effect on small businesses. Northern cities see strong job growth with warm days, while June heatwaves hamper job numbers in the south.
• Wages for hourly workers are on the rise again, driven by service industries, after a dip in May.

Longer summer days lead to longer shifts at SMBs

Small businesses are seeing a big pick-up in activity, though not quite at the same levels as prior years. Owners are relying on existing employees working more to meet demand.

Employees working

(Monthly change in 7-day average, relative to January of reported year)

Hours worked

(Monthly change in 7-day average, relative to January of reported year)

Data generally compares rolling 7-day averages for weeks encompassing the 12th of each month; April 2023 data encompasses subsequent week to account for Easter holiday. Source: Homebase data.

Entertainment is booming for small business

As schools let out, families have been turning to outdoor entertainment to fill their time.As schools let out, families have been turning to outdoor entertainment to fill their time.

Entertainment¹ saw a massive increase from May to June (22.3%), in-line with prior years, while Hospitality saw a jump (8.8%) that lagged previous years’ huge spikes.

Food & dining and retail (0.9% and 1.9%, respectively) also saw increases, but showed more seasonal consistency – Main Street shopping and dining has been a monthly mainstay.

Percent change in employees working

(Mid-June vs. mid-May, using Jan. ‘19 and Jan. ‘23 baselines)²

1. Entertainment includes events/festivals, sports/recreation, parks, movie theaters, and other categories.
2. June 9-15 vs. May 12-18 (2019); June 12-18 vs. May 8-14 (2022); June 11-17 vs. May 7-13 (2023). Source: Homebase data.

Northern cities saw a weather-driven boost in SMB activity

Unseasonable heat in the south on both coasts led to dampened spending at small businesses.

Note: June 11-17 vs. May 7-13. Source: Homebase data

After a down month, higher wages in service industries pushed earnings up for hourly workers

Wage inflation

Month-over-month change in average hourly wages

Note: Data measures average hourly wages for locations that utilized Homebase to pay employees in both June 2022 and June 2023. Source: Homebase Payroll data.

Hourly Employee Pulse Check

A June pulse check of over six hundred hourly employees shows decreasing optimism towards job prospects.

Longer hours and lower expectations for workers

A majority of employees surveyed still see their job prospects remaining the same or improving (both 36% and 36%, respectively) in a year, though 28% are now either unsure or foresee worse prospects (up from 23% in April). The uptick in respondents reporting pessimism (8%) and uncertainty (20%) shows more and more hourly employees are questioning if the grass really is greener for future prospects.

Small business employees are generally working more this summer than in prior months. While more reliable shifts lessen anxiety about getting enough hours, they also put a damper on optimism for what jobs might be out there next year.

Survey question: Do you think your job options will be better, about the same, or worse in 12 months compared to today?

Source: Homebase Employee Pulse Survey. N = 873 (Feb. ‘23); N = 666 (Apr. ‘23); N = 611 (Jun. ‘23)

More hours is good news, but not for all

Employees continue to report widespread satisfaction with their jobs (79% in June); however, compared to our April survey, we observed 7% on respondents being unhappy versus 4% in April, showing that there remains dissatisfaction among select groups. One in five employees have plans to look for a job in the near future (21%), versus four in five, who either said no or aren’t sure (79%).

Getting consistent hours at work is a key consideration driving employee satisfaction, but other factors are still on the minds of hourly workers. Team relationships, flexibility, wages and work environment are just some of the other ways owners can win the hearts of Main Street workers.

Source: Homebase Employee Pulse Survey. N = 873 (Feb. ‘23); N = 666 (Apr. ‘23); N = 611 (Jun. ‘23)

Employees still concerned about inflation but less so on hours

Inflation (56%), burnout (50%) and non-work stresses (46%) remain top concerns for employees. Of note, June showed a steep drop in concerns about reduced hours compared to April (33%, down from 40%), revealing hourly employees are more satisfied with the increased hours on their schedules.

Source: Homebase Employee Pulse Survey. N = 666 (Apr. ‘23); N = 611 (Jun. ‘23)

Wages take back seat to other non-pay benefits for workers

It’s not all about the money. While wages remain a compelling factor in workers’ decision on where they work (46% of cited it as a top 3 criteria), June saw non-pay benefits, including schedule control (57%) and coworker relationships (54%), take first and second place.

Source: Homebase Employee Pulse Survey. N = 666 (Apr. ‘23); N = 611 (Jun. ‘23)

Link to PDF of: June 2023 Homebase Main Street Health Report If you choose to use this data for research or reporting purposes, please cite Homebase.

The post Summer Hits Main Street as Jobs and Hours Grow appeared first on Homebase.

Although, this didn’t stop small businesses from their summer hiring ramp up, albeit at lower employee wage rates than seen last year.

Another month, another rate hike from the Federal Reserve – policymakers continued to pump the brakes in May, as they remain split on whether additional intervention might be necessary in coming months. Homebase seeks to help clarify how the broader economic environment is affecting small businesses and their employees as summer approaches by analyzing behavioral data from more than two million employees working at more than one hundred thousand SMBs.

Summary of findings: SMB employment activity increased, but wage rates decreased for the first time since 2021.

• Employment activity at small businesses increased in May; as spring turns to summer, small businesses are experiencing a seasonal boost.
• Retail and Food & Drink are showing strength, continuing to outpace their historical seasonal growth.
• Spring weather variation is likely driving regional differences – warm weather in the Midwest and storms in Texas translated into varied business activity.
• Wages declined from April to May (-0.2%) for the first time since 2021, as decreases show a cooling labor market.

Employment activity at small businesses increased in May 

As spring turns to summer, small businesses experience a seasonal boost

Employees working

(Monthly change in 7-day average, relative to January of reported year)

Hours worked

(Monthly change in 7-day average, relative to January of reported year)

Data generally compares rolling 7-day averages for weeks encompassing the 12th of each month; April 2023 data encompasses subsequent week to account for Easter holiday. Source: Homebase data.

Retail and Food & Drink are showing strength, continuing to outpace historical seasonal growth

While most industries have picked up through May, Retail, Food & Drink, and Caregiving (1.3%, 0.7%, and 0.8%, respectively) have exceeded their seasonal growth benchmarks most significantly.

Hospitality (3.6%) and Entertainment (4.8%) saw the strongest increases from April to May, though their growth fell short of previous years.

Percent change in employees working

(Mid-May vs. mid-April, using Jan. ‘19 and Jan. ‘23 baselines)1

1. May 12-18 vs. April 7-13 (2019) and May 7-13 vs. April 16-22 (2023).  Pronounced dips generally coincide with major US Holidays. Source: Homebase data

Spring weather likely driving regional differences

Warm weather in the Midwest and storms in Texas translated into varied business activity

Note: May 7-13 vs. April 16-22. Source: Homebase data

After yet another interest rate hike, wage rates declined month over month for the first time since 2021

Wage inflation

Month-over-month change in average hourly wages

Note: Data includes individuals who have been continuously employed and active since January 2022. Source: Homebase data.

Link to PDF of: May 2023 Homebase Main Street Health Report If you choose to use this data for research or reporting purposes, please cite Homebase.

The post Temperatures Rise as Wages Fall appeared first on Homebase.