Employment in the California small business sector grew last month, according to data released this week, suggesting the state's economy is on the rebound.
The Intuit Small Business Employment Index, released Monday, noted a 0.4 percent jump in hiring by the state's small businesses - a sign of recovery for entrepreneurs looking to incorporate in California.
"A substantial fraction of the new jobs in the recovery have been created by small businesses," said economist Susan Woodward. "This month's numbers are stronger than last month and they look better in every category."
"As small businesses generally recover sooner than big businesses, this continued growth is quite encouraging for economic recovery," she added.
The report noted the addition of 70,000 small business jobs for the month, which is similar to a report released Wednesday by ADP, which noted 187,000 private sector jobs gains in January. According to that report, 97,000 of those jobs were in the small business sector.
As California struggles with a massive budget deficit ranging up to $27 billion, the state is looking for new means of generating revenue. With small business employment on the rise, lawmakers are hoping tax collection rates will increase as well.
Tags : ca, incorporation news, small business management
Posted: Feb 2nd, 2011