US small business job growth is on the rise, a positive signal that markets and the economy is starting to pick up.
The ADP Small Business Report March 2021 shows that private sector small business employment increased by 174,000 jobs from February to March 2021.
ADP Small Business Report March 2021
The ADP Small Business report is published monthly by the ADP Research Institute in collaboration with Moody’s Analytics. The report tracks employment figures for private rented sector businesses with 49 or fewer employees.
The March report found that there was a 174,000 increase in jobs among small businesses with 1 – 49 employees.
Very small businesses with 1 – 19 employees witnessed an employment rise of 100,000 during the same period.
The number of new jobs in small businesses with 20 – 49 employees rose by 74,000 in February and March 2021.
Service Sector Most Responsible for Employment Gains
The report looks at the best performing sectors in terms of jobs growth. It found that in February and March, the service-providing sector witnessed strongest employment growth, with a 163,000 increase in jobs.
Very small businesses operating in the service-providing sector fared especially well, with a 96,000 increase in jobs. This was followed by small businesses with a 68,000 increase.
Goods-producing sector also experienced a 11,000 jump in employment in the same period.
Small businesses in the production of goods were the best performing, with a rise of 6,000 jobs. Very small businesses experienced a surge of 4,000 jobs in February and March this year.
Small businesses make a vital contribution to the US economy, so signs that employment within the small business community is on the rise is positive, signaling better times are ahead for small businesses, job-seekers and the broader US economy.