Small businesses represent bulk of job losses

The smallest companies experienced most of the job losses at the end of 2009, according to The Wall Street Journal.

Businesses with fewer than 50 employees accounted for 61.8 percent of all job losses in the private sector during the fourth quarter and created 54.1 percent of new jobs. Small businesses employ about 29 percent of all workers.

This is a reversal compared with the end of 2008 when small businesses accounted for 50 percent of all job losses and 53.9 percent of job gains, making up a larger share of jobs added than jobs lost.

Economists say small businesses have lagged during the economic recovery in part because access to credit remains tight.

Firms of all sizes cut a net 200,000 jobs during the fourth quarter of 2009, adding 6.6 million jobs and cutting 6.8 million jobs. This is an improvement compared with 2008, when firms cut a net 1.8 million jobs.

Companies with 50 to 249 employees accounted for 17.8 percent of all job losses during the fourth quarter of 2009 and about the same amount in job gains. Companies with 250 to 999 employees accounted for 10 percent of all job losses and 9.9 percent of job gains. The largest companies, with 1,000 or more employees, accounted for 17.7 percent of all job losses and 18.3 percent of job gains; these large companies employ about 38 percent of all workers.

Date : 8/19/2010