Small Business Finance News

Rate Of Job Cuts Continues To Slow

Written by Jenna Weiner
Published: 3/4/2010

Though some still face difficulty, a new report finds that job cuts are slowing and some sectors are experiencing growth.

Though many businesses and workers are still confronting difficult times, the economic environment seems to be developing. In another sign of good news for small businesses, the pace of job cuts continued to decline in January.

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The latest study by Automatic Data Processing found that private-sector employers cut 20,000 jobs in February, the fewest since February 2008 when employment started declining. This makes February the 11th straight month of reduction in overall job losses.

The service sector experienced job growth for the third month in a row, following a decline of 21 months - 17,000 jobs appeared in February. Manufacturing moved from losses to growth for first time since January of 2008, with 3,000 additional jobs.

CNNMoney quoted John Challenger, CEO of Challenger, Gray & Christmas, who said in a statement that many economists "agree that a recovery is well underway." He added that "it may be a couple of more months before hiring begins to surge, but it is clear that employers have shifted away from downsizing and are poised to start adding workers."

According to a recent report from International Business Times, many legislators believe that hesitant lending on the part of banks stops small businesses from creating jobs. IBT quoted Senator Carl Levin at a senate hearing as saying that Michigan employers consistently cite "the difficulty in obtaining the capital they [rely] on to finance their operations."

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