Small Businesses Added 75,000 Jobs in January
company ADP released its monthly report on private-sector employment for
January on Wednesday. The report showed the private sector added 175,000 jobs
during the month, less than the 185,000 expected by analysts surveyed by
Bloomberg. In addition, December’s originally reported gain of 238,000 jobs was
revised downward to 227,000. Media reports tended to blame the lower than
anticipated number on the fierce weather that has enveloped much of the nation.
While the overall ADP report was a bit of a disappointment, the results
covering small businesses were much stronger. The report showed small
businesses added 75,000 jobs during the month, continuing a six-month trend of
solid small business job growth. In particular, the report showed the smallest
businesses, those with fewer than 20 employees, added 42,000 jobs, while those
with 20 to 50 employees added 33,000.
In another piece of positive news for small businesses, a new quarterly
report from Wells Fargo showed that 22 percent of small business owners now plan to
increase hiring in the coming year, up from 16 percent in the prior quarterly report.
That, combined with an increase in the number of small business owners
expecting higher revenues and better cash flow, pushed the Wells Fargo
small-business index to its highest level since the beginning of the
recession in 2008.
“NFIB estimates similar job growth in January with net new jobs
below 200,000, again,” says Holly Wade, NFIB’s Senior Policy Analyst for the Research Foundation. “Small business owners continue to lag in job growth as
slow sales remain an obstacle for many.” Read more on NFIB’s latest Small Business Jobs Report.
The Department of Labor released the January jobs
report for the full economy this morning. In addition, that report will contain the
Bureau of Labor Statistics annual revisions to job creation for previous
Bloomberg News has a piece on the overall ADP
report, while the Washington Post runs an item focusing on the
small business aspects. Other reading: The ADP
National Employment Trends and the Wells Fargo/Gallup small business owner
This news article is intended to keep small business
owners apprised of current events that may affect them. It does not necessarily
reflect NFIB’s policy position on such issues.