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(Temporary) Help wanted, apparently - SageworksStats on Forbes.com

Posted by Mary Ellen Biery
(Temporary) Help wanted, apparently - SageworksStats on Forbes.com

June unemployment in the U.S. was flat, and nearly a third of jobs added were in the temporary-help services industry, a field that has shown strong growth over the last 12 months, according to data from Sageworks Inc. “During the last 12 months, privately held employment service firms have seen their revenues grow by almost 20 percent annually, which far outpaces the average annual growth of around 10 percent for private companies across all industries,” said Sageworks analyst Libby Bierman. “That sales growth validates what the employment numbers released this morning showed—the economy has recently been adding a lot of temporary jobs, which are positions that employment service firms routinely fill.” ...

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The health care ruling's upside for private companies

Posted by Mary Ellen Biery
The health care ruling's upside for private companies

Thursday's U.S. Supreme Court ruling is reviving impassioned discussions about whether President Obama's health care law will be positive or negative for businesses, especially smaller ones. And while those debates will continue for months or maybe years, one immediate, positive impact on owners of privately held businesses is that they know more about what to expect in the short term, said Brian Hamilton, co-founder and CEO of Sageworks Inc. ...

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Why aren’t companies hiring? Sageworks Stats @ Forbes.com

Posted by Mary Ellen Biery
Why aren’t companies hiring? Sageworks Stats @ Forbes.com

The U.S. economy’s paltry addition of 69,000 jobs in May has intensified the political finger-pointing, but the truth is that no one really knows for sure why the economy is growing yet too few jobs are being created, said Sageworks CEO Brian Hamilton. “The jobs report is disappointing because, at this stage of the recovery, the economy should be generating more jobs,” said Hamilton, who is also co-founder of the financial information company. The sluggish job growth is a paradox, he said, “because privately held companies, which actually produce the vast majority of new jobs, are performing quite well.” ...

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Concerns cause private companies to delay hiring

Posted by Mary Ellen Biery
Concerns cause private companies to delay hiring

Private companies are too nervous about the future to ramp up hiring, according to a new Sageworks Inc. survey of accountants, bankers and other financial professionals who work closely with these firms. About 32 percent of financial professionals in the survey said their clients aren’t hiring because they are concerned about the economy in general, while another 22 percent said private companies have become more risk averse because of lingering anxiety from the last recession. ...

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April unemployment ticks down to 8.1 percent

Posted by Mary Ellen Biery
April unemployment ticks down to 8.1 percent

The U.S. unemployment rate dipped in April to 8.1 percent from 8.2 percent in March, but fewer-than-expected jobs were added. “The unemployment rate is not materially changing, which is disappointing since privately held companies continue to grow their sales and are generally the engine of job growth,” said Brian Hamilton, Chairman of financial information company Sageworks. ...

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Private company sales, GDP continue to grow, but what about unemployment?

Posted by Sageworks
Private company sales, GDP continue to grow, but what about unemployment?
New data from Sageworks, a financial information company, shows that privately held companies in the United States saw average sales growth of 8.3 percent in the 12-month period ending in April 2012. That’s up slightly from the 2011 growth rate of around 8.2 percent, and up significantly from the low in 2009, when sales declined by an average of almost 6 percent.  Private companies drive over 50 percent of GDP, which grew at an annual rate of 2.2 percent in the first quarter, according to the latest government data. While private company sales and U.S. GDP have been growing consecutively for over two years, another important economic indicator, the national unemployment rate, now at 8.2 percent, has not improved at a similar rate. “In reviewing the numbers, the fear now is that we may be running out of runway before the onset of another recession,” said Sageworks CEO Brian Hamilton, a noted expert on privately held companies. “We will not be surprised to see continued growth in GDP given the fact that privately held companies continue to grow at a healthy rate.  However, what is becoming slightly concerning is that the unemployment rate is not decreasing at a fast enough rate.” In general, and looking over a long period of time, the average expansionary cycle is approximately 4 years, and the average recessionary period is one year, Hamilton explained. “Historically, it has taken approximately 12 to 20 months for unemployment to fall in an expansion to roughly pre-recession levels,” he said. “Right now, we are into the 34th month of the recovery, and yet unemployment remains too high.  If we don’t get employment up, we may be bumping into the next recession, during which time we cannot expect job growth.”

It wasn't overnight, but private hotels have turned around

Posted by Mary Ellen Biery
It wasn't overnight, but private hotels have turned around

Privately owned hotels have weathered a difficult recession and are back on a profitable path. The industry posted positive net profit margins in 2011 for the first time in three years, and sales increased about 8 percent, according to a financial statement analysis of privately owned hotels by Sageworks. ...

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Who's hiring?

Posted by Mary Ellen Biery
Who's hiring?

Last week's jobs report showed that fewer-than-expected positions were added in March, stoking concern that the economy isn’t growing fast enough. But several industries that have driven a lot of the hiring over the last year continued to add workers last month. Who’s been hiring, and which industries have the kind of business fundamentals that could pave the way for adding more jobs? ...

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Signs that business banking is back

Posted by Mary Ellen Biery
Signs that business banking is back

Business banking is back - well, mostly. Commercial lending has been growing, according to Federal Reserve data. And recent research by Sageworks, a financial information company, shows that business' borrowing-related financial ratios have improved, making access to credit more likely. ...

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