Leap day economic impact minimal

CHICAGO – Commuters can get an extra day of rides on February’s monthly pass this year. Apartment dwellers receive an added day for their month’s rent. And salespeople have an extra day to build up their monthly total.

The 29th day added to February – Leap Day – brings a smidgen of a financial boost for some consumers and slight adjustments for businesses that rely on daily sales and workers who are paid by the hour.

But for businesses in a global economy, the effects of the extra day are fairly insignificant, especially as hourly-based manufacturing jobs have decreased and more people are paid an annual salary, experts said.

“For most businesses (Leap Day) was never a big deal and absolutely over time has diminished,” said Ken Goldstein, an economist with the Conference Board, a nonprofit business research association.

Various traditions have sprung up for Leap Day over the years – it was once known as a day when women could propose marriage to men.

Larry Lubell, president at Urban Insurance Agency in Chicago, said February is usually a tough month for his business, and he’s glad to have an extra 24 hours to generate revenue. Today “will diminish the negative effect the month usually has,” he said.

Lubell said that his company, which sells insurance policies, usually takes in about $15,000 less in February than other months. Leap Day figures to cut that shortfall in half, he said.

For auto dealerships and hotels, this year’s Leap Day will be less of a bonus than it could be because it falls on a Wednesday, they said.

It would be better if Feb. 29 fell on a Saturday, said Gene Storm, general manager of Fletcher Jones Honda in Chicago.

“The way the car business works is I can sell zero cars one day but then seven on the next,” Storm said. “But in general, Wednesday is not going to be dramatic.”