Salaries are dropping and just in the nick of time.

With recession fears looming, small business owners in search of good news can find it in this month's SurePayroll Small Business Scorecard.

After an amazing twenty-nine straight months of salary increases, the small business economy finally saw a decline in average salaries in February .

That's good news for small business owners, and it's allowed them to continue to grow despite the economic storm clouds overhead.

We'll jump into the details on the numbers shortly, but it's safe to say that this is good economic news .

The small business economy, which is a huge engine of growth for the overall economy, refuses to stall out. That's evidenced by the strength in hiring that we see in our economic data this month.

On the salary front, it's clear that softness in the economy is allowing employers to offer employees a little less money.

In effect, small business employees are making a small contribution to keep the economy moving forward…and hopefully that contribution will allow small business owners to make it through rough economic waters to a time when they can again grow while paying higher salaries.

Of course, the downside risk on lower salaries is that consumers will have less money in their pockets, and that may slow consumer spending, which we've become overly dependent on as an engine for economic growth.
 

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