Big Drop in Small Business Jobs, ADP Reports

adp small business jobs report april 2022

Small businesses lost 120,000 jobs from March to April, according to the ADP National Employment Report issued May 4, 2022. That’s despite the nation seeing an overall gain in jobs of 247,000 (medium and large-sized businesses) during the same time period. Franchise jobs also saw an increase, gaining 47,400 jobs.

Why are small businesses losing jobs?

ADP Chief Economist Neela Richardson said small businesses are struggling to find workers.“Labor supply shortages caused job gains to soften for both goods providers and service providers,” she said. “As the labor market tightens, small companies with fewer than 50 employees struggle with competition for wages and increased costs.”

Small businesses with 1-19 employees lost 96,000 jobs, with the majority of those losses (about 83,000) in the service providing sector. The goods producing sector lost 12,000 jobs.

Small businesses with 20 to 49 employees lost 25,000 jobs. The service providing sector lost 20,000 jobs and the good producing sector lost 4,000 jobs.

Franchise Businesses Add 47,400 Jobs

During the same time period, franchises gained 47,400 jobs.The majority of those gains were in restaurant chains, at 32,100. The auto parts/dealers industry saw a 6,800 jobs gain, and accommodations gained 3,400 jobs. What’s happening? In the service-providing sector, are workers heading to franchises such as restaurants, lodging establishments and auto-service centers in search of better standard wages? There’s no data available to answer that question.

Other franchise gains were in business services (1,700) and real estate (300). Food retailers remained even, with no job gains or losses.

Image: ADP

Lisa Price Lisa Price is a staff writer for Small Business Trends and has been a member of the team for 4 years. She has a B.A. in English with a minor in journalism from Shippensburg State College (Pennsylvania). She is also a freelance writer and previously worked as a newspaper circulation district manager and radio station commercial writer. In 2019, Lisa received the (Pennsylvania) Keystone Award.