Data from the ADP Employment Report, a monthly measure of employment at U.S. businesses that use Advanced Data Processing’s payroll services, shows that small companies lost a lesser fraction of their workforce than big businesses during the Great Recession.
While large companies have yet to show much of a trend back to pre-recession employment levels, ADP’s figures show that small companies have begun to add back workers. The smallest businesses – those with one to 49 employees — lost the smallest proportion of workers, but medium sized companies — those with 50 to 499 workers — have shown a slightly faster pace of recovery in jobs.
The chart below shows the number of people employed each month in businesses with 1-49 employees, 50-499 employees and more than 499 employees (as a percentage of the number employed in November 2007, the month before the recession started).
Editor’s note: added the third paragraph above for clarification’s sake.