According to a new report from ADP, hiring increased within private companies across the United States in July. The ADP National Employment Report for July 2013 found that more than 200,000 jobs were added in the private sector during the month, up from June’s 198,000 figure. Despite the economic challenges still facing entrepreneurs, small business owners made a significant contribution to the growth, adding 82,000 jobs to the economy, representing 41 percent of overall job growth in July.
The ADP job growth figures were shaky and unpredictable throughout 2012, and have experienced uneven month-to-month gains and losses during the first half of 2013. In February of this year, for example, 198,000 jobs were added to the economy; in March, that number dropped to 124,000. Over the next three months, gains were made again, leaping from 141,000 jobs created in April to the most recent 200,000 July figure.
Optimism abounds while some remain uncertain
According to ADP’s data, job growth beat economists’ expectations. Throughout 2013, businesses with fewer than 50 employees have experienced substantial job growth, adding more than half a million jobs to the economy. The 500,000 new jobs accounted for approximately 40 percent of job growth in the private sector on a month-by-month basis.
Updated unemployment figures are scheduled to be released this week by the U.S. Department of Labor Statistics. Although job rates have risen over the past year, the most recent government reports listed the national unemployment rate at 7.6 percent in May of this year. Some of the unemployment statistics can be attributed to the loss in industrial and manufacturing jobs – while many small and large businesses have increased hiring, manufacturing jobs decreased by 5,000 in July.
Fueling further optimism, it has been reported that consumer spending is also on the rise. The Bureau of Economic Analysis recently reported that the national economy grew by 1.7 percent in second quarter 2013, outstripping economists’ projections. Economists are attributing this positive trend to an increase in exports, investments, and consumer spending.
Many small business owners are still wary of the announcement, however, as many wait for word from the Federal Reserve on whether the central bank will decrease asset purchases beginning as soon as September. Many small business owners rely on this news as a way to forecast their own potential for business success.
Small businesses that are experiencing higher growth rates may be looking to expand operations to capitalize on possible increased consumer spending. One of the best ways to improve a business is to replace out-of-date equipment. Small business owners can come to National Funding, a small business lender, for guidance on equipment financing and other operational needs.