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Labor Market Improving, Small Businesses Helping

Labor Market Improving, Small Businesses Helping

As the engine of economic growth, small businesses have done their part in boosting payrolls – something owners may need some cash flow cover to help with, maybe in a working capital loan. One oft-looked to indicator of a strong economy is sustained job growth, and the latest statistics depict a labor market – and by extension, economy – continually growing stronger.

Unemployment trends down again

According to the latest official federal statistics, U.S. businesses created 252,000 jobs in December to close out a late 2014 surge by the economy on third quarter GDP growth and low oil prices. The U.S. Bureau of Labor Statistics said the national unemployment rate fell to 5.6 percent, and job gains occurred across all categories: professional and business services, manufacturing, healthcare, retail. The unemployment rate fell more than 1 percent over the course of 2014.

ADP shows small businesses a factor in jobs growth

While the federal bureau does not track jobs gains by business size, a comparable monthly measure of the labor market released by ADP found small businesses contributed 106,000 jobs in December to the professional services firm’s total count of 241,000 jobs added.

“December delivered another strong number well above 200,000 to close out a solid year of employment growth with over two and a half million jobs added,” Carlos Rodriguez, president and CEO of ADP, said. “Small businesses continued to lead the way, but mid-sized and large companies also showed solid gains.”

Now that U.S. small businesses have begun to emerge from the recession and are fortifying their expansions of operations through hiring, small business owners may need financial help in the form of a small business loan. Securing such business financing will help owners keep operations grounded in and able to cover the costs of a charging economy and small business landscape.


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