3 Trends Supporting Small Business Employment Growth

There are a lot of reasons to celebrate small businesses this month. November 2 marked National Veterans Small Business Week, and later this month we’ll celebrate Small Business Saturday on November 28. Plus, when we look at October employment data, it is small businesses (1-49 employees) that are driving employment growth right now.

 

According to the ADP National Employment Report® and the ADP Small Business Report, small businesses have accounted for almost 50% of total employment growth for over a year. October was no exception, with 90,000 out of 182,000 jobs coming from small businesses.

 

Why are small businesses doing so well? There are a few key drivers for this trend:

Low energy prices:

Low energy prices are bad news for large oil producers and the larger manufacturers that serve the energy industry. However, low energy prices cut expenses for small businesses. Low energy prices also put more money back in consumers’ pockets, encouraging more spending.

Construction gains: 

Construction is largely a small business-driven industry, and it’s been performing well for the past few months. According to Commerce Department data, single-family construction is at its highest since early 2008. Construction contractors added 35,000 jobs, about equal to the 34,000 jobs added in September.

 

SOURCE: FORBES