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ADP Reports SMB Employment Losses Are Declining
Written by Jenna Weiner
The ADP Small Business Report recently released data on November employment rates.
In recent news for small business owners, the ADP Small Business Report recently released the latest data on SMB employment decreases. Private employment among small businesses decreased by 68,000 in November, according to the report.
ADP defines small businesses as those with fewer than 50 employees on the payroll. The data processing company includes the ADP Small Business report as a subset of its National Employment Report because ADP executives believe SMBs make an important contribution to economic growth.
While SMB employee reductions totaling 68,000 may seem like a great decline, November losses show improvement over those from October. Last month, SMB employment in the goods-producing sector declined by 36,000 jobs while in October it declined by 43,000 jobs. November also saw 32,000 SMB job losses in the service providing sector, showing improvement from 34,000 SMB job losses in October.
"Overall economic activity is stabilizing and employment losses among small-size businesses are diminishing. Employment usually trails economic activity, so it is likely to decline for at least a few more months," says Joel Prakken, chairman of Macroeconomic Advisers.
Small businesses are expected to be the leading job creators, helping the nation reach economic recovery. According to the Small Business Adminsitration, SMBs have created 64 percent of net new jobs over the past 15 years.
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