Many economists segment the US employment pool into three pieces–large business, small businesses, and government. It has been broadly believed that job creation at small companies drives the size of the work force more than the other two. But, small business hiring was pinched in the recession. While large companies raised money at low rates, small ones were barely able to get modest loans from banks.
Some data showed that small business hiring rebounded modestly in the fourth quarter. However, a new study from payroll and tax firm Intuit shows that January was a challenge.
Reuters reports on the survey
Small business payrolls grew at a slower rate in January and wages fell, an independent survey showed on Monday, suggesting the pace of overall job growth moderated after December’s sturdy gain.
There have been fears that the economy could not add jobs at the rate it did in the second half of last year. This is early confirmation of that.
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