The CBIZ Small Business Employment Index reported a seasonally adjusted decrease of 0.95% in January, a reversal of the hiring gains from December and in contrast to the most recent jobs report from the U.S. Bureau of Labor Statistics.

The CBIZ SBEI tracks payroll and hiring trends for more than 3,500 companies that have 300 or fewer employees. According to the SBEI, 17% of companies increased staffing, 51% made no change to their headcounts and 32% reduced employment totals.

“It is very likely that the uptick in omicron cases was one of the variables that contributed to steep declines seen in January,” Philip Noftsinger, executive vice president of CBIZ, said. “January typically experiences a hiring downturn following the holiday shopping season, but this year’s trends show a more significant change.”

The ADP and Moody’s employment report indicated hiring decline among small, medium-sized and large companies. Its January reading showed an overall decrease of 301,000 private-sector jobs for the month. Small businesses accounted for a decline in 144,000 of those jobs on a seasonally adjusted, month-over-month basis. The ADP and Moody’s report counts small businesses as companies with 49 or fewer employees, while the CBIZ SBEI uses data from companies with 300 employees or fewer.

The CBIZ SBEI reported depressed hiring in all four regions measured. The Northeast (-4.42%) and Central (-3.33%) regions experienced the largest changes from December. The West (-1.71%) and Southeast (-1.70%) both experienced smaller declines that align with seasonal hiring trends.

On an industry level, the most notable hiring increases came in mining and rental and leasing. Accommodations and food services, agriculture, arts and entertainment, real estate and retail experienced hiring declines.

“Winter weather could have been a reason for the large declines in the Central and Northeast regions,” Noftsinger said. “What has become known as ‘The Great Reshuffle’ is also an added factor, as small business work to attract employees while also managing outside influences like supply chain issues, inflation and other concerns.”