If you listen to the mainstream media about job creation, the
theme goes something like this: Small businesses still are
entrenched in the recession and cannot hire new employees,
prolonging the recession and adding to the inability of
unemployment rolls to decrease.
But that isn't really the case. According to Bloomberg
BusinessWeek, small and midsize companies have been producing
more jobs than larger companies and creating them faster since the
recovery from the recession began. The magazine goes on to say that
because small-business employment still lags where it was during
pre-recession levels, the perception that small businesses are not
ADP, a nationwide company offering payroll services, sponsors
the monthly ADP Employment Report, which is developed and
maintained by Macroeconomic Advisers LLC, St. Louis. The report
analyzes employment at more than 300,000 private businesses and
recently revealed companies with fewer than 50 employees
hired 2.6 percent more people in March 2012 than in July 2009 (when
the recovery began). And businesses with 50-499 employees hired 3.2
percent more people during the same period. Conversely, companies
with more than 500 employees hired 0.2 percent fewer people during
Behavioral economists say the impression that small businesses
aren't creating jobs is because people want things to return to
pre-recession levels, which clearly is not happening.
Small-business job losses were so large during the recession, the
jobs simply have not been replaced yet. The same ADP report shows
small-business employment is 96.7 percent of what it was before the
recession began. At this rate, it will take until the end of 2013
for small-business growth to...
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