Small businesses lost 9src,000 jobs in May, according to ADP’s National Employment Report. Overall, in 2022 small businesses have lost 36src,000 jobs, with 2srcsrc,000 in April and May.
ADP: Small Businesses Lost 9srcK Jobs in May as Slump Continues
In January, the small business job loss was src44,000. A 96,000 job gain in February was followed by a 90,000 job loss in March. In April, small businesses lost src20,000 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 src28,000 jobs. The majority of those gains, src04,000, 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 9src,000. The majority of those losses, 78,000, were in businesses with src9 or fewer employees. Of those 9src,000 jobs, 7src,000 were lost in service providing industries. Businesses with src9 or fewer employees lost 6src,000 jobs; businesses with 20-49 lost srcsrc,000 jobs.
In the goods producing sector, small businesses lost 20,000 jobs. The majority of job loss, src7,000, was in businesses with src-src9 employees.
Franchise Jobs Report – May 2022
Franchises saw an increase of 26,400 jobs. The majority of the job gains were in restaurants, at src8,000. Other gains were in auto parts and dealers (4,src00), accommodations (4,800) and real estate (200). Franchises lost jobs in business services (2,300) and food retailers (400).
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Image: ADP