Intuit Indexes Show Small Businesses Added 20,000 New Jobs

MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–
Intuit Inc. (Nasdaq:INTU) today issued its monthly Small
Business Employment and Revenue Indexes
. Below are topline results
from each of the reports:

Small Business Employment Index

  • U.S. small businesses added 20,000 new jobs in January, an increase
    from December of 0.09 percent, making for more than 880,000 jobs added
    since March 2010.
  • Hourly employees worked an average of 112.0 hours in January, up 30
    minutes, or 0.4 percent, from December’s revised figure. This is the
    largest number of hours worked since Intuit began tracking in 2004.
  • Small business employees’ monthly pay grew by 0.4 percent, with
    average compensation reaching ,841, up from December.

These findings come from the monthly Intuit QuickBooks Small Business
Employment Index and are based on data from Intuit
Online Payroll
and QuickBooks
Online Payroll
, covering the period from Dec. 24 – Jan. 23.

The Intuit QuickBooks Small Business Employment Index shows an
increase of 0.09 percent in January. The Employment Index reflects data
from approximately 247,000 small business employers, a subset of small
businesses that use Intuit Online Payroll and QuickBooks Online Payroll.
The month-to-month changes are seasonally adjusted and informative about
the overall economy.

Small Business Revenue Index

  • Revenues per small business increased by 0.4 percent in December,
    roughly 4.4 percent when annualized.
  • The Other Services category showed the largest growth, up 0.5 percent.
    Construction and Real Estate followed with growth of 0.4 percent.
  • Since May 2009, Professional Services has grown the fastest at 6.2
    percent per year; Healthcare services have seen the slowest growth at
    2.2 percent per year.
  • None of the industries tracked by the Revenue Index showed a decline
    in December.

This index is based on data from QuickBooks
Online
, covering the period from Dec. 1-31.

Small Business Employee Monthly Hours Worked for hourly employees
increased by 0.4 percent in January. The levels reflect data from
approximately 690,000 hourly employees of the Intuit Online Payroll and
QuickBooks Online Payroll customer set of approximately 247,000 small
businesses and is not necessarily representative of all small
businesses. The month-to-month changes are seasonally adjusted and
informative of the overall economy.

A Closer Look at Results

  • The Small Business Employment Index

“While small businesses added new jobs in January, it wasn’t as fast in
the previous two months. We did see a big rise in hours worked during
the month, up 0.4 percent, almost a half an hour. This is the highest
level of hours worked per employee since we began tracking more than a
decade ago. A change this large nearly guarantees an increase in
compensation per worker, which rose by slightly more than 0.4 percent in
January,” said Susan
Woodward
, the economist who works with Intuit to produce the Small
Business Employment and Revenue Indexes.

“Longer work hours drove most of the increase in compensation, but some
was also due to a higher hourly wage. Both of these appear to be due to
the recovering economy,” Woodward said.

Wages for hourly workers rose again in January –2.3 percent at an annual
rate. The number of hourly workers who worked full-time rose by half a
percent, to 31.5 percent. The new-hire rate also rose slightly, but is
still far below its pre-recession levels.

Western states drove employment growth, led by Washington, Idaho, Oregon
and Nevada. With the exception of Idaho, these states have recorded the
fastest small business employment growth rates for the past three months.

States in the Great Lakes and New England regions showed the weakest
growth. Michigan, Wisconsin and Massachusetts, which posted the lowest
growth for the past two months, continued that trend. Despite geographic
variations in hiring, all states saw an increase in hours worked for
hourly employees, and all saw a rise in compensation per worker.

Small Business Employee Monthly Compensation for all employees
increased by 0.4 percent in January. This data includes the compensation
paid by small business owners to themselves. The levels reflect data
from approximately one million employees of the Intuit Online Payroll
and QuickBooks Online Payroll customer set of 247,000 small businesses,
and are not necessarily representative of all small business employees.
The month-to-month changes are seasonally adjusted and informative about
the overall economy.

  • Small Business Revenue Index

Revenue per small business showed solid gains across all industries,
growing 0.4 percent in December and 4.4 percent when annualized.

“This is a substantial change in small business revenues,” said
Woodward, noting that, in the last year, the Other Industries category
has led growth at 6.3 percent, followed by Construction and Real Estate,
each at 5.0 percent, reflecting the increase in construction activity
and home sales. “These three industries have seen the fastest growth
over the last year,” said Woodward.

In contrast, the revenue growth for Healthcare was again below average,
at 4.2 percent; the slowest growth occurred in the Accommodation sector,
which includes restaurants and bars, at 2.2 percent.”

The Intuit QuickBooks Small Business Revenue Index is based on
data from more than 251,000 small businesses, a subset of the total
QuickBooks Online financial management user base.

About the Intuit Small Business Indexes

The Intuit Small Business Indexes provide unique, near real-time
information each month on the activity of the smallest businesses in the
U.S. in terms of revenue, hiring and compensation trends.

The Employment Index is based on anonymized, non-identifiable aggregated
data from approximately 247,500 small business employers, a subset of
users that use Intuit Online Payroll
and QuickBooks
Online Payroll
. The Revenue Index is based on anonymized,
non-identifiable aggregated data from approximately 150,000 small
businesses, a subset of users that use Intuit’s QuickBooks
Online
financial management offering and are matched in Dun
& Bradstreet
’s small business industry classifications.

Together, the indexes provide a more complete picture of the economic
health of the nation’s small businesses. More information on the Intuit
Small Business Indexes is available at index.intuit.com.

About Intuit Inc.

Intuit Inc. creates business and
financial management solutions that simplify the business of life for
small businesses, consumers and accounting professionals.

Its flagship products and services include QuickBooks®, Quicken®
and TurboTax®, which make
it easier to manage small
businesses
 and payroll
processing
personal
finance
, and tax
preparation and filing
Mint.com
provides a fresh, easy and intelligent way for people to manage their
money, while Demandforce®
offers marketing and communication tools for small businesses. ProSeries®
and Lacerte® are Intuit’s
leading tax preparation offerings for professional accountants.

Founded in 1983, Intuit had revenue of .5 billion in its fiscal year
2014. The company has approximately 8,000 employees with major offices
in the United States, Canada,
the United KingdomIndia and
other locations. More information can be found at www.intuit.com.

Source: Intuit Inc.

Intuit Inc.
Stephen Sharpe, 650-224-2362
Stephen_Sharpe@Intuit.com
or
Access
Communications
Bitsy Rich, 917-522-3516
brich@accesspr.com