The October CBIZ Small Business Employment Index (SBEI), a barometer for hiring trends among companies with 300 or fewer employees, further decreased by 1.28 percent through the month, after posting a decrease of .81 percent in September.

Today's announcement follows ADP's October jobs survey, which illustrated that the private sector added 114,000 jobs in October. However, this number is down from a hiring increase of 122,000 new jobs recorded in September.

Philip Noftsinger, business unit president for CBIZ Payroll Services, explains, "This month's SBEI results show a steeper decline than in September, indicating that job growth at the small business level is still struggling."

Additional take-away points from the October data include:

• At a glance: Of the companies that were surveyed, the data shows that 28 percent reported a decrease in employee headcount while 22 percent increased staffing. 50 percent of the companies involved in the survey maintained their number of employees.
• Small business sector: Small business owners continue to remain hesitant in bringing in new employees, especially amidst global economic concern and bleak domestic market outlook.
• What to watch: With consumer spending likely to heighten during the holiday season, it could accelerate economic activity and confidence. A pickup in consumer spending could help to propel the economy forward and increase employer sentiment when it comes to hiring.

"In many cases, employers facing a year-end calendar may be opting to slow the replacement process for positions opened due to voluntary attrition in an effort to boost net income. We should see some stabilization to the numbers as we move into the holiday season and hope for job growth during that period as well," says Noftsinger.