Small businesses added 114,000 new jobs in October according to ADP’s National Employment Report. Small businesses contributed to almost a third (31.23) of the 365,000 new hires during the past month.
The October figure remains well below June’s record 937,000 new job hires by small businesses and 78,000 less from September’s figures. Though far better than April’s gloomy figures of over 20 million job losses with 6 million being lost by small businesses.
October 2020 ADP Small Business Report
Businesses employing less than 20 employees hired some 63,000 new employees while those employing 20 to 49 employees hired 51,000 new employees.
Small businesses engaged in the service sector hired the most with 112,000 new hires in October.
Other findings of the ADP report include:
- Among small businesses, the goods-producing sector employed 2,000 new jobs following the service sector.
- October also fared well for franchises with 49,600 new jobs generated up from September’s 20, 750 figure
- Among franchises, restaurants hired the most with 41,100 new jobs followed by 8,500 new hires among auto parts and dealers.
- Companies employing 50 to 499 employees lead in hiring with 135,000 new jobs in October. Companies employing more than 500 employees added 116,000 new jobs.
- Overall the service sector accounted for almost all the job creation with 348,000 new jobs. Among these, the leisure and hospitality sector added more than a third at 125,000 jobs.
Overall Job Creation
On the whole, all sectors saw positive job growth across the board in October. The goods-producing sector was the second highest employer adding 17,000 jobs in October down from 196,000 in September
October’s performance however was not as large as the 749,000 new jobs created in September and even lower from August’s 482,000 jobs.
The labor market however continues to add more jobs albeit at a slower pace. The leisure and hospitality sector that was hit the hardest because of the pandemic showed modest growth in October with 125,000 new jobs. This up from September’s 92,000 figure.
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Keep it up SMBs. Things are still going to be hard, but you can do it.