8th July 2004 - According to a payroll provider SurePayroll, small businesses are increasing in United States but a proportionate hike in the salary of employees working in this sector is not visible. This analysis was based on SurePayroll's preliminary second quarter 2004 data for its small business scorecard.

SurePayroll also revealed that compared to the number of contractors paid for the jobs in small business arena, the business seemed to have increased in size. Based on the first quarter of 2004, small business grew by 2.6 percent. Both the employees and the independent contractors also grew on an average. This showed that small business had a steady growth rate in the recent past.

However, salaries were low in the second quarter as compared to the first quarter.

The president of SurePayroll, Michael Alter has opined that salaries have not increased as it happens to be a buyer's market for the new employees. The employees cannot demand high salary and have to settle for a lower value. They cannot bargain because vacancies are precious and someone else would settle for a lower rate. Although potential small business employees have moved from joblessness, the quality of jobs is deficient. Alter has further said that if the economy recovers, there is likely to be better quality jobs and small business salaries in the near future.