There are a host of reasons why small business employment numbers should have been anemic in July. But, they weren’t. As a matter of fact, small business kept overall job growth from moving into the red.
The ADP National Employment Report showed non-farm employment rose by only 9,000 jobs. That is one of the worst showings in several years.
Large businesses, those with over 500 employees, lost 32,000 jobs. Middle sized businesses, those with between 50 and 499 employees lost 9,000 people.
Small businesses, those with less that 50 people, added 50,000 jobs.
The odds against small business pulling all of the load were considerable. In theory, high energy costs and tight credit should be shutting down the ability of companies of modest size to stay open, let alone expand.
Without any direct help from the Fed or the banking system, small businesses must, in many cases, be financing whatever success they have out of their own operating cash flow.
As the economy moves toward the Fall, the open question is whether small business can continue to buck the overall trend. The answer to that is, without some support for credit and commodities price relief, the answer is probably no.
Douglas A. McIntyre
If You’ve Been Thinking About Retirement, Pay Attention (sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today! (sponsor)
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
