As the COVID-19 pandemic sweeps across the world, the March 2020 ADP small business report shows why small businesses feel the brunt of the outbreak. The virus forced many to close or limit services and products as nations are forced into lock down.
The ADP National Franchise Report for March 2020 shows how the pandemic affects franchise businesses. And it looks at jobs in the US. The ADP report is published monthly by the ADP Research Institute.
The March 2020 report shows the employment changes within franchises as the COVID-19 outbreak continues. And it creates disruption in almost all walks of life.
However, the report highlights how not every sector is being negatively impacted by the virus. For example, while a total of 4,300 franchise jobs were lost in March, not every industry suffered. Restaurants saw a 5,100 increase in franchise recruits in March and the auto parts and dealers sector witnessed an employment increase of 2,200. This compares to food retailers, business services, accommodations and real estate lost 700, 700, 3,200 and 100 jobs during March respectively.
March 2020 ADP Small Business Report
A separate report by ADF shows how private sector small business employment has decreased from February to March 2020.
The ADP Small Business Report shows how private sector small business employment decreased by 90,000 jobs during the period when the COVID-19 outbreak surfaced and escalated in the United States.
90,000 jobs were lost in small businesses with 1 – 49 employees. The research examined the employment trends of the different sizes of small businesses. It found that very small businesses with 1 – 19 employees lost the highest number of employees in the wake of the coronavirus pandemic, with 66,000 jobs lost. Small businesses with between 20 and 49 employees lost 24,000 jobs.
The research also examined the severity of job losses within different industries. It found that the service-providing sector has been worse hit, losing a total of 77,000 jobs, 57,000 of which were lost within very small businesses with between 1 and 19 employees.
The goods-producing sector has also been heavily hit, with a total of 14,000 jobs lost, 10,000 of which were lost amongst very small businesses.
Reports like these prove crucial in helping small businesses remain informed. Because they provide information about trends affecting their markets. Crisis like the COVID-19 pandemic make these things especially important during times of . With such information on-board, businesses can be in a better position to make more informed decisions and be more productive and efficient.
The Mission of the ADP Research
The reports’ authors state: “The mission of the ADP Research Institute is to generate data-driven discoveries about the world of work, and to derive reliable economic indicators from the discoveries.
“Its commitment is to offer these discoveries to the world at large as our unique contribution to making the world of work better and more productive, and to bring greater prosperity to the economy at large.
Both reports make quite depressing reading. But consider glimmers of positivity from the research. For example, the ADP National Franchise Report shows the restaurant sector sees growth with a 5,100 increase in jobs. Similar positivity appears in the auto parts and dealers’ industry proving not all small businesses are being crippled by the ongoing pandemic crisis.
Very small businesses seem more negatively impacted by the disruption. While larger small businesses seem better able to weather the virus outbreak. But this also provides hope. Not all small businesses face the same fate.
The ADP Small Business Report does have a silver lining. It provides very small businesses with the inspiration, aspiration and determination. This encourages entrepreneurs to grow their businesses to essentially bullet proof them from crisis like a global pandemic.
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