Steady Progress For Small Business Hiring
Small businesses created nearly half of new jobs in September, according to ADP’s September National Employment Report. Of the 166,000 private sector jobs added during the month, 74,000 were generated by businesses with 50 or fewer employees.
Among businesses of all sizes, service producing jobs outweighed goods producing jobs by a ratio of nearly 8 to 1. Trade, transportation and utilities along with professional and business services accounted for half of new jobs, while construction jobs accounted for about 10 percent.
The September figures mark a seasonal high for small businesses. The number of new jobs is the highest since June. The job market, however, performed below expectations during the summer. ADP initially reported an employment gain of 176,000 for August, but revised it to 159,000.
“The job market appears to have softened in recent months,” explained Mark Zandi, chief economist of Moody Analytics, which publishes the jobs report in conjunction with ADP. “Fiscal austerity has begun to take a toll on job creation.” Getting a small business loan has been a challenge for individuals who must deal with strict lending policies. Poor financing means small business owners are unable to expand their business and seek new hires.
However, despite the lower-than-expected figures, September denotes steady improvement. Compared to the same month last year, September 2013 has seen considerably more new jobs, and 2013 has had much more consistent hiring than 2012, Bloomberg Businessweek reports.
“While job growth has slowed, there remains a general resilience in the market,” Zandi said. “Job creation continues to be consistent with a slowly declining unemployment rate.”
Small businesses that are hampered by tight lending from banks can turn to an alternative lender like National Funding. National Funding offers quick and simple financing that helps small businesses invest fast and avoid the hassle of banks, letting business owners focus on the job they do best.