Small businesses at risk | Weekly Excerpt

Week of May 30 to June 3

Decrease in EmploymentSmall businesses at risk

Small businesses in the United States are at risk due to the decline in the level of hiring by this sector. As a result, they are being significantly outnumbered by medium and large companies. They contributed 97,000 and 122,000 jobs respectively between April and May 2022 according to ADP's National Employment Report in the United States.

However there was an increase in the private sector of 128,000 jobs from April to May according to ADP's National Employment Report, well below economists' projections calling for 300,000 new jobs. Apparently the worst monthly growth in new hiring in more than two years.

Nela Richardson and small businesses

ADP's chief economist commented in a statement that. "The hiring rate has moderated in all industries."calling small businesses in particular an important "source of concern as they struggle to keep up with the larger companies that have been booming lately."

According to ADP, job declines were worst among small businesses with fewer than 20 employees, which saw employment fall by 78,000 workers in April, however medium and large businesses added 97,000 and 122,000 jobs, respectively.

Lower Productivity but Higher WagesSmall businesses at risk

U.S. worker productivity fell at its steepest pace since 1947 in the first quarter, while unit labor cost growth accelerated.