With -13,000 jobs in December, small businesses ended the year on a low note. But the rebound in January, with 51,000 jobs, is a step in the right direction according to the ADP National Employment Report. And it is good news as the pandemic continues to drag on.
According to Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, the impact of the pandemic seems to be affecting large companies now.
In the press release, Ahu says, “The labor market continues its slow recovery amid COVID-19 headwinds.” Adding, “Although job losses were previously concentrated among small and midsized businesses, we are now seeing signs of the prolonged impact of the pandemic on large companies as well.”
January 2021 ADP Small Business Report
Not surprisingly, the positive job gains are coming from the service-providing sector. This as more cities across the country start to open restaurants, bars, and other service-related businesses. Overall the service sector is responsible for a total of 57,000 jobs. However, the good-producing sector was responsible for a loss of 6,000 jobs, bringing the total down to 51,000.
The 51,000 jobs are split almost evenly between very small (1-19 employees) and other small (20-49 employees) businesses at 26,000 and 25,000 respectively.
Small Business Deals
Franchises Also Made a Recovery
Franchises didn’t end 2020 on a high note either, with -5,300 jobs, but January came in with 10,700 jobs. The biggest winner is the auto parts and dealers sector/industry capturing the lion’s share of the jobs at 8,600. Restaurants came next with 5,500 jobs and real estate at 200. Accommodations, business services, and food retailers all lost jobs.
National Employment Report Also on the Plus Side
From -123,000 to 174,000 jobs, the national numbers for January are also a reason for some optimism. Just as in December, midsized companies with 50-499 employees carried the load with 84,000 jobs in January. Small and large businesses brought in 51,000 and 39,000 jobs respectively.
The service sector led the way with 156,000 jobs. Education and health (54,000), professional and business (40,000), and leisure and hospitality (35,000) were the winners.
In the goods-producing sector, construction delivered 18,000 jobs and manufacturing added another 1,000 jobs.