Small businesses added 81,000 jobs, but upcoming election fuels economic concerns
The private sector added 162,000 jobs in September, according to the ADP National Employment Report released Wednesday. The report anticipates Friday’s jobs report released by the government. The government's October jobs report will be released Nov. 2 prior to the election.
Small business posted the most growth last month, adding 81,000 jobs. Medium businesses with between 50 and 499 employees added another 64,000, while large businesses with at least 500 employees added 17,000 jobs.
There are more than 27 million small businesses in the United States and they account for up to 80 percent of all new jobs, according to the Small Business Association. Fifty-six percent of small business owners surveyed last month by Millionaire Corner state they are financially better off than they were a year ago. The primary reason, they said, was the improved performance of their portfolio (40 percent), followed by an increase in their disposable income (28 percent) and a decrease in their debt (26 percent). Almost one-quarter (24 percent) believe that the economy is improving.
But almost one-third (31 percent) describe themselves as “very worried about the upcoming election, with the economy as the issue they deem the most important. Half are very concerned about the scheduled year-end tax cuts and mandatory spending cuts known as the fiscal cliff, and the consequences to the market and their businesses should lawmakers take no action.
This concern is reflected in a recent survey by the National Federation of Independent Business (NFIB) and the National Association of Manufacturers (NAM) in which two-thirds of small business owners said there is too much economic uncertainty to expand.
The ADP report further reports that employment in the private service-providing sector gained 144,000 jobs in September, down from 175,000 in August. The goods-producing sector gained 18,000 jobs last month, while manufacturing rose 4,000. Construction employment rose 10,000, the strongest showing since March, when mild winter weather boosted construction activity, ADP noted.
Previously reported estimated gains were revised downward: The July increase was reduced by 17,000 to an increase of 156,000 jobs, while the August increase was reduced by 12,000 to an increase of 189,000.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.