Noteworthy trends this month:

• Small business owners saw the lowest number of employees working in June over the past three years. This data is based on the distinct number of hourly workers with at least one clock-in.
• Southern and Western states were hit the hardest, but Northern and Midwest states also experienced a slowdown because of the abnormal temperatures.
• All industries are feeling the labor impact, with fewer employees working compared to previous years. The entertainment & hospitality industries continue to outpace other industries in terms of growth, even with temperatures rising.

Employee activity

Small business owners saw the lowest growth in number of employees working in June in the past three years. 

In 2024, growth has slowed by mid-year, reflecting the broader impact of heatwaves on small businesses. May-June of this year saw growth of 1.0%, a noteable drop compared to previous years (1.8% in 2023 and 3.2% in 2022).

Key statistics:

• January – February: 2.1% growth, down vs. 2022 but the highest of 2024.
• February – March: A year over year improvement of 1.2%.
• March – April: A drop in growth to 0.3%.
• April – May: Saw a 1.1% increase, indicating some recovery and steady YOY.
• May – June: Growth of 1.0%, steady vs. Apr-May but down from 1.8% in 2023 and 3.2% in 2022.

Hours worked

Employee activity came in well below historical norms as summer kicks off. The monthly change in the 7-day average of “Hours Worked,” relative to January 2024, highlights this trend. Hours worked is calculated from hours recorded in Homebase timecards.

Despite a strong start, 2024 saw fluctuations in hours worked with a significant drop in early spring (-0.7%) and another slowdown by the start of summer (1.0%).

Key statistics:

• January – February: Small business employee activity saw a 2.7% rise, indicating a positive start to the year vs. 2021.
• February – March: Activity held relatively steady with a 2.1% increase, out-performing previous years.
• March – April: A drop to -0.7% suggests challenges during this period, although previous years showed slowed growth.
• April – May: A healthy rebound to 2.0% reflects some recovery.
• May – June: Another drop to 1.0%, showing minimal growth versus previous years and the second lowest period of 2024.

Regional impact

Southern States were hit hard by the latest heatwave. “Businesses open” is down this month as many Southern States faced +100°F temperatures, with other core economic indicators trending downwards (hours worked, employees working) in the Southeast.

While the Midwest and Northeast showed some positive core economic indicator trends, the Southeast, Southwest, and West regions faced some notable declines across businesses open and employee activity, highlighting regional disparities due to weather conditions.

Key statistics:

• Midwest: A notable 4% increase in hours worked and employees working, with slow growth in businesses open.
• Northeast: Slight upwards trend in businesses open and a 3% rise in employees working.
• Southeast: Experienced significant declines, showing a -1.0% drop in businesses open and -0.2% in employees working.
• Southwest: Slight increase in hours worked and employees working, with a slight decline of -0.4% in businesses open.
• West: Negative trend of -0.8% in businesses open and flat growth in employees working.

Industry-specific insights

Every industry is feeling the labor impact lately, with growth coming in lower across all industries relative to previous years.

While some industries like Entertainment and Hospitality saw growth in 2024, many sectors experienced either minimal growth or declines, highlighting ongoing challenges in various parts of the small business landscape.

Key statistics:

• Beauty & Wellness: 2024 saw a 2% increase, compared to 3% in 2023 and 6% in 2022.
• Caregiving: Came in flat at 0.1%, still down YOY.
• Entertainment: Increased by 20% in 2024, but still down from 26% in 2022.
• Food & Drink: Matching 2023’s growth of 1%.
• Hospitality: Grew by 6% in 2024, a significant drop from 15% in 2022.
• Retail: Similar to last year, grew by 2%.
• Home & Repair: Grew by 3%, down versus previous years.
• Medical & Veterinary: Declined by -2%, escalating the decline seen in 2023.

This June report shows that the extreme weather has impacted small business operations, with notable declines in employee activity and hours worked. Regional and industry-specific data reveal the widespread effects, underscoring the need for strategies to mitigate weather-related disruptions and support business recovery.

View a PDF below of our full June 2024 Main Street Health Report. If you choose to use this data for research or reporting purposes, please cite Homebase.

June 2024 Homebase Main Street Health Report

Our data is publicly available so that policy makers and academics can better understand small businesses. If you’re interested in more granular data, or have questions about the dataset, email us at data@joinhomebase.com

The post June Main Street Health Report: Due to early heat wave, businesses are experiencing a cool-off appeared first on Homebase.

With stable growth across Main Street, hourly workers are feeling more content, with 4 out of 5 saying they’re happy with their jobs. Concerns around inflation and non-work stresses declined by 6% and 5%, respectively. 

Noteworthy trends this month:  

• While wages are still important to hourly workers, non-monetary criteria like flexible work environments and relationships with coworkers are key factors in determining where they work. 
• As turnover ticked up 11.7% in May m/m, so did hiring activity (+6.0%), with small businesses hiring additional workers potentially expecting an increase in demand
• Summer is here! Outdoor businesses are growing. The Northern region is growing.

2024 business activity shows signs of recovery in growth

Subhead: The onset of summer seems to draw slightly higher gains in employment activity than last year. 

Employees working

(Monthly change in 7-day average, relative to January 2024)

Hours worked

(Monthly change in 7-day average, relative to January 2024)

Note: Data 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.

Midwest, Northeast, and Western states driving growth

Southern states seem to have slowed  down, which is consistent with pattern seen this time last year

Output by Region

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

Note: April 7-13 vs. May 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

Outdoor businesses are booming, similar to last year

Foot traffic is driving a particularly hot period for Entertainment, Hospitality, and Home & Repair businesses

Small businesses in the Hospitality (+5.4%), Entertainment1 (+8.7%), and Home & Repair (+4.7%) sectors outperformed seasonal expectations in May, continuing recent trend

The Retail and Food & Drink industries also saw increased work activity, but not quite at the level of prior years.

Percent change in employees working

(Mid-May vs. mid-April, using Jan. ‘22, Jan. ‘23, and Jan. ‘24 baselines) 

1. Entertainment includes events/festivals, sports/recreation, parks, movie theaters, and other categories. 
2. April 10-16 vs. May 8-14 (2022); April 16-22 vs. May 7-13 (2023); April 7-13 vs. May 12-18 (2024). April 2023 data encompasses subsequent week to account for Easter holiday.  Source: Homebase data

No wage growth in May

Entertainment has seen the steepest decline, however, it aligned with last year’s pattern

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 May 2024 and May 2023. Total includes industries not depicted here.  Source: Homebase Payroll data.

Labor costs are slowing, remain 30% above 2022 levels

Growth in hiring activity led to a marginal increase in wages in May

Avg. hourly wages

Percent change in average hourly wages across all jobs, relative to January 2022

Note: Data measures average hourly wages for locations that utilized Homebase to pay employees in both May 2024 and March 2023. Source: Homebase Payroll data.

Hiring continues to grow m/m, since March 2024

Owners continue to hire additional workers to keep up with growth, albeit at a lower rate than seen historically

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 for May came in lower than seasonally expected compared to the last year

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.

Hourly employee pulse check

May 2024

Employee optimism holds steady

36% of employees surveyed reported optimism about their job prospects in a year, as steady wage increases and business at existing employers buoys expectations about the coming months.

Consistently positive outlook in the workforce amid healthy economic activity on Main Street bodes well for small businesses this summer.

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);

N = 575 (Jan. ‘24);   N = 652 (Mar. ‘24); N = 3214 (May ‘24)

On Main Street, employees are feeling less anxiety

Worries are still present for employees of small businesses, but they’re generally starting to wane. In May, concern about inflation and about non-work stresses decreased by 6% and 5%, respectively.

The specter of economic hardship (recession, job loss) is taking up less mindshare for hourly employees during a time of increased consumer demand.

Looking ahead, which of the following factors are you concerned about?

Source: Homebase Employee Pulse Survey.

N = 427 (Aug. ‘23); N  = 437 (Oct. ‘23); N = 575 (Jan. ‘24); N = 652 (Mar. ‘24); N = 3214 (May ‘24)

Flexible work and workplace relations are the top drivers for employee retention

While wages are important, creating a positive work environment in non-monetary ways is the deciding factor for employees on where they choose to work

Rank the top 3 most important factors in your decision on where you work

Source: Homebase Employee Pulse Survey. N = 3214 (May ‘24)

To employees, wages are becoming more of a given

Rank the top 3 most important factors in your decision on where you work (“Competitive wages”)

Avg. hourly wages

Percent change in average hourly wages across all jobs, relative to January 2023

Source: Homebase Payroll Data/Homebase Employee Pulse Survey. N = 666 (Apr. ‘23); N = 611 (Jun. ‘23); N = 427 (Aug. ‘23); N = 437 (Oct. ‘23); N = 575 (Jan. ‘24); N = 652 (Mar. ‘24); N = 3214 (May ‘24).

Note: Data measures average hourly wages for locations that utilized Homebase to pay employees in both May 2024 and May 2023.

Employee sentiment around job satisfaction continues to be positives and stable

Roughly 4 in 5 hourly workers agree they’re happy with their jobs overall. 

With general concerns about the future abating, the majority of surveyed employees report feeling satisfied with their jobs and level of compensation.

To what extent do you agree with the following sentence: “Overall, I am happy with my job.”

To what extent do you agree with the following sentence: “Overall, I am satisfied with my level of compensation.”

Source: Homebase Employee Pulse Survey

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

N = 575 (Jan. ‘24); N = 652 (Mar. ‘24); N = 3214 (May ‘24)

View a PDF of our full May 2024 Main Street Health Report. If you choose to use this data for research or reporting purposes, please cite Homebase.

May 2024 Homebase Main Street Health Report

Our data is publicly available so that policy makers and academics can better understand small businesses. If you’re interested in more granular data, or have questions about the dataset, email us at data@joinhomebase.com

The post May Main Street Health Report: Small businesses see robust hiring activity in contrast with broader economy appeared first on Homebase.

We face a choice: put simply, do we want to live in a world of fulfillment centers or neighborhoods?

This is not just about the vibrancy and character of the communities we live in. It’s about their health. Every study we have shows that when good jobs go away terrible things happen. Jobs provide a lot more than income.

Luckily we have a hero in this fight: small businesses. They provide our neighborhood vibrancy. But they also create the majority of jobs, and they are good jobs. They provide development, opportunity, and community, among many other things. There is a reason that job satisfaction is higher at small businesses.

From the beginning, we built Homebase to support these incredible local business teams. We have been building their everything app for hourly work to eliminate paperwork, improve the work experience, and build a more connected and impactful team. And we’ve made a good dent: last year we saved small businesses over 50M hours, and helped them provide a better work experience to 2% of the US workforce.

Over the next stage, we’re taking this further. We believe that the same technology that can flatten the world, can also make it more human and allow a thousand flowers to bloom. We’re here to build superpowers for local business teams that allow them to get more done and have a better work experience. Next year, we will save these teams 100M hours of work.

We’re here to help small businesses thrive so that they can do the thing they do better than anyone: provide great experiences to their customers and their employees. When they do this, we have our thriving communities.

—-

We are at an inflection point in “the future of work”

A decade ago, we started Homebase with the belief that if we helped local business teams move online, we could make work and life significantly better for them. At the time, over 3M businesses were stuck on paper schedules, post-it notes, and time-consuming legacy payroll. This wasn’t just causing a lot of inefficiency–5-10 hours a week wasted–but had profound hidden costs in quality of life and economic instability for 20% of the US workforce. 

Fast forward, Homebase has helped over 150K businesses move off paper. We’re making work easier for over 2% of the US workforce–more workers than the largest employers in the US. We saved them over 50 million hours of collective time last year. It’s a great start, and something I’m very proud of. But it’s just a start.

A decade in, the question is no longer “will these teams move online.” They will. It’s now a question of what happens once these teams are online. 

Technology can make jobs better, but it’s a choice.

There are many headlines and articles about how AI will eliminate jobs, but it also threatens to make our existing jobs worse. The technology-enabled drive for efficiency can reduce human interaction and turn jobs into mindless task completion. It can enable more jobs to become “gig-ified”, reducing advancement opportunities and long-term financial certainty.

But this same technology can also make jobs more human. Automation can eliminate the mindless tasks that take us away from the human interaction and creative parts of our work. It can enable more flexibility and control without sacrificing advancement. 

This is the choice we make with technology, and the decisions will have far-reaching impact for millions of people. Over 20% of our US workforce works in the local economy. Over the next decade, their work experience will change. We want to make sure it changes for the better. 

Good jobs are the foundation of healthy communities.

This is not a philosophical argument, this is an extremely pragmatic one. Imagine a policy prescription that could positively impact most everything we care about: improve children’s health outcomes, reduce divorce rates, increase child education outcomes, reduce drug abuse, reduce deaths of despair, improve sleep, reduce stress and negative health outcomes. It also improves self-reported life satisfaction.* This isn’t magic; it’s good jobs. Every time we study this, we learn the same thing: good jobs are the foundation of a healthy community.

So what makes a job a good job? There is research here too: Opportunities for advancement in your career and income. Learning. Predictability. Flexibility. A positive social environment. Feeling like your work contributes to something.** 

As we go through this technology change, it’s not enjoy to just talk about the unemployment rate. We must also make sure the jobs we have are good jobs.

Small businesses create good jobs.

We have a hero in this fight: small business.

Many people know that small businesses are the great job creators of the US, and that 46% of the workforce works in small businesses. They provide opportunities for immigrants and those without college educations. They provide career advancement and skills training for the future: as an example, 80% of restaurant owners started in entry-level restaurant positions.

But they also provide good jobs. Our own research at Homebase has shown that job satisfaction is higher in small businesses. When we conduct regular surveys of hourly employees in small businesses, the benefits they cite look remarkably like the research around good jobs. (More to share here soon.)

When we help small businesses win, we help workers win. Technology has a big role to play in helping small businesses thrive–and making these jobs even better.

We are here to help small businesses win.

Running a small business is hard, and managing an hourly team is hard. There is still an extraordinary amount of time that gets sucked into mindless tasks supporting operations. It’s chasing down employee clock-out times; the day spent running payroll and making sure everyone took their breaks; refreshing task lists; the hours screening resumes and scheduling interviews for people that don’t show up; the mindless filling out of employment onboarding forms; and, yes, building the schedule. This list goes on and on.

We’ve built tools to make this work easier, but our real goal is to eliminate it completely. We know that when we give small business owners and managers time back, we don’t eliminate the job: we make it better. Yes, they get more time with their families and friends. But they also invest it into the passions of their business that make them unique, and bring character to their neighborhoods. They invest it in their teams–the things that make them great places to work. 

Beyond time savings, we also want to make the jobs they provide even better. We’re killing the paycheck. We’re making it easier to make work fit in your schedule and hit your income goals. We’re helping great work get recognized. But we have a lot more ahead, including eliminating more headaches and enabling more benefits. It is always hard to attract and retain workers, and we want to make it easier for local businesses to compete.

When we use technology to enable small businesses to compete, we don’t do it by making them look more like the big corporations. We do it by accelerating the advantages they’ve always had: providing a great experience to their customers and their teams. Next year, our goal is to save small businesses 100M hours on the tedious stuff, so they can provide these great experiences instead.

As we head into the next decade of Homebase, we know we’re fighting for the health of our neighborhoods for the next 100+ years. Our mission supporting these local business teams has never been more important. My excitement about how we can accomplish it has never been greater.

Comment: there have been many people who have helped shape my views in this essay, but none are more important than the regular conversations with our incredible Homebase customers. Thank you for your trust, and the continued inspiration to all of us here.

_______________
Sources:

* (1) “The Job Satisfaction-Job Performance Relationship: A qualitative and quantitative review” by TImothy A. Judge et al”
(2) “The importance of Employee well-being and Health Promotion in the Public Sector: An Empirical Analysis” by Karina Nielsen et al.
(3) “Job control, job demand, or social class? The effects of working conditions on health behaviors and obesity in Sweden” by Mel Bartley et al.
(4) “Employment quality and fathering: An exploration of the relationship in middle-class families” by Paul R. Amato and Brett A Beattie
(5) “Childhood poverty and depressive symptoms for Whites and African Americans in two American Cohorts” by Laura C. Hill, et al.

** (1) Judge, T. A., & Cable, D. M. (1997). Applicant personality, organizational culture, and organization attraction. Personnel Psychology, 50(2), 359-394.
(2) Tannenbaum, S. I., Mathieu, J. E., Salas, E., & Cannon-Bowers, J. A. (2012). Meeting trainees’ expectations: The influence of training fulfillment on the development of commitment, self-efficacy, and motivation. Journal of Applied Psychology, 97(4), 808-824.
(3) Greenhalgh, L., & Rosenblatt, Z. (1984). Job insecurity: Toward conceptual clarity. Academy of Management Review, 9(3), 438-448.
(4) Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work: Test of a theory. Organizational Behavior and Human Performance, 16(2), 250-279.
(5) Beauregard, T. A. (2012). Perfectionism, performance, and job satisfaction: A multilevel analysis. Journal of Management, 38(5), 1451-1475.
(6) Greenhalgh, L., & Rosenblatt, Z. (1984). Job insecurity: Toward conceptual clarity. Academy of Management Review, 9(3), 438-448.
(7) Liden, R. C., Wayne, S. J., & Sparrowe, R. T. (2008). An examination of the mediating role of psychological empowerment on the relations between the job, interpersonal relationships, and work outcomes. Journal of Applied Psychology, 93(3), 483-491.
(8) Wrzesniewski, A., McCauley, C., Rozin, P., & Schwartz, B. (1997). Jobs, careers, and callings: People’s relations to their work. Journal of Research in Personality, 31(1), 21-33.

The post The Future of [Good] Work: Supporting Small Business and creating the world we want to live in appeared first on Homebase.

Industries that rely heavily on foot traffic, including Food & Drink (-6.7%) and Entertainment (-8.8%), endured the most severe impact of these conditions.

Noteworthy trends this month:

• After closing 2023 with consistent wages, employees at small businesses saw a 1.8% monthly increase in pay rate after the holiday season.
• The Northeast (-9.0%) and Midwest (-12.7%) saw the biggest post-Christmas comedown in hours worked at small businesses in January, while the Southwest saw a massive drop in business activity during the deep freeze that began around MLK Day. 
• Small businesses experienced elevated post-holiday turnover and a higher-than-expected increase in hiring, driving elevated labor costs as seasonal workers departed.

The seasonal slowdown at Main Street businesses post-holidays was more pronounced in 2024 than prior years

Small businesses came down off the holiday bustle more quickly than they have in past years, after a period of prolonged steadiness.

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.

Southern cities maintained economic activity from the holidays

The seasonal decline for SMBs was concentrated in northern areas, specifically the Midwest, where January weather – and thus, consumer demand – was particularly dreary.

Output by MSA

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

Note: December 10-16 vs. January 7-13. Source: Homebase data.

Northern regions feel the new year downswing in demand

The Northeast and Midwest saw the largest drop in activity, as consumers opted to stay home and spend less to start 2024

Output by Region

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

Note: December 10-16 vs. January 7-13. 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

Nationwide deep freeze over MLK Day felt acutely in Southwest

Dangerously cold weather in January hampered business activity in desert states most intensely

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)

Note: 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

Entertainment and Food & Drink were most impacted by post-holiday slowdown

Two industries most dependent on foot traffic – entertainment (-8.8%) and food & drink (-6.7%) –  saw a steeper decline in activity  than in years prior

In general, all industries experienced a decline in business activity from pre-Christmas peaks, as the first few weeks of a new year typically precipitate declines in consumer spending and patronization of Main Street businesses.

Percent change in employees working

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

1. Entertainment includes events/festivals, sports/recreation, parks, movie theaters, and other categories. 
2. December 8-14 vs. January 12-18 (2019/2020); December 11-17 vs. January 8-14 (2022/2023); December 10-16 vs. January 7-13 (2023/2024). Source: Homebase data

Wages at small businesses rose into the new year

After closing 2023 with steady rates, average employee earnings jumped after the holiday season

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 January 2024 and January 2023. Total includes industries not depicted here.  Source: Homebase Payroll data.

Labor costs are 30% higher than two years ago

SMB owners face elevated costs to staff their businesses compared to January 2022

Avg. hourly wages

Percent change in average hourly wages across all jobs, relative to January 2022

Note: Data measures average hourly wages for locations that utilized Homebase to pay employees in both January 2024 and January 2023. Source: Homebase Payroll data.

After a steady holiday season, small business owners started the new year with big changes to their rosters

Seasonal workers left their roles at elevated levels in January, leading to a spike in turnover and increased hiring activity at SMBs to begin 2024.

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.

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.

View a PDF of our full January 2024 Main Street Health Report. If you choose to use this data for research or reporting purposes, please cite Homebase.

The post January Main Street Health Report: Small businesses experience post-holiday slowdown while battling deep freeze appeared first on Homebase.

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 Wage growth rate holds 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.

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