ADP: Small Businesses Lost 91K Jobs in May as Slump Continues
In January, the small business job loss was 144,000. A 96,000 job gain in February was followed by a 90,000 job loss in March. In April, small businesses lost 120,000 jobs. “Small businesses remain a source of concern,” said ADP Chief Economist Nela Richardson. “They struggle to keep up with the larger firms that have been booming of late. ”Overall in May, private sector employment for small, medium and large businesses combined was 128,000 jobs. The majority of those gains, 104,000, were in service providing jobs. Franchises gained 26,400 jobs.
Richardson said that the competition for employees will be impacted by rising inflation. A higher cost of living means that employees will seek higher wages, she said. “Small businesses are disadvantaged – in their ability to compete with wages,” Richardson said.
Details of Small Business May Report
The overall job loss for small businesses in May was 91,000. The majority of those losses, 78,000, were in businesses with 19 or fewer employees. Of those 91,000 jobs, 71,000 were lost in service providing industries. Businesses with 19 or fewer employees lost 61,000 jobs; businesses with 20-49 lost 11,000 jobs.
In the goods producing sector, small businesses lost 20,000 jobs. The majority of job loss, 17,000, was in businesses with 1-19 employees.
Franchise Jobs Report – May 2022
Franchises saw an increase of 26,400 jobs. The majority of the job gains were in restaurants, at 18,000. Other gains were in auto parts and dealers (4,100), accommodations (4,800) and real estate (200). Franchises lost jobs in business services (2,300) and food retailers (400).
This article, “Small Business Job Loss Reaches 361,000 To Date for 2022” was first published on Small Business Trends