ADP June 2021 National Employment Report

adp july small business business jobs report

Small businesses added 215,000 jobs to the US economy between May and June, according to the latest ADP Small Business Report, released earlier this month.

Jobs continue to increase among small businesses as Americans emerge from the COVID pandemic.

ADP Chief Economist Nela Richardson, in a call with the media, said the second quarter growth among small businesses is “robust” and predicted continued growth in a strong second half of 2021.

Let’s delve into the key takeaways from June 2021 ADP Small Business Report:

ADP Small Business Report – June 2021

Since January 2021, more than 3 million jobs have been filled. But payrolls are still down. Payrolls are $7 million less than they were during the same time period.


That growth is 122,000 jobs in businesses from 20-49 employees. The growth is 93,000 in businesses from 1-19 employees.

By type of business, the service industry contributed 200,000 new jobs, and goods producing businesses were 15,000 of the new jobs.

ADP Franchise Report – June 2021


Franchise businesses added 104,100 jobs in June, according to ADP data.

Restaurants lead that growth with 86,600 jobs. Next are 11,900 jobs in Accommodations and 6,500 in Auto parts and Dealers.

Real estate jobs increased by 200. Business services jobs showed a 1,000 decrease, and food retailers saw a 200 decrease.

Leisure and Hospitality Show Strongest Gains

It’s not surprising that Leisure and Hospitality businesses would show strongest gains, since they were hardest hit during the pandemic.

Asked by SBT if the gain in Leisure and Hospitality was seasonal and geographical, Richardson said that states’ re-openings “unleashed consumer demand.”

“Where states were quick to reopen, there was a more robust demand,” Richardson said. “The summer season is one of the stronger ones (in that industry), and consumer demand will likely ebb over time.”

But even with a seasonal change, the leisure and hospitality industry will remain strong, she added.

“Will this industry again readjust? We think this is an overall recovery,” Richardson said. “It is likely to continue to be strong.”

Barriers to Filling Jobs

Richardson said that barriers that have existed since January continue to stall the re-employment rate. More than 2.7 million jobs are “uncovered,” she said.

Why is that happening? Richardson described what she termed the “frictions” of a timing mismatch:

  1. Limited affordable child and elder care.
  2. Ongoing health concerns
  3. Unemployed workers receiving compensation are delaying re-entering the workforce.

Richardson said that she believes these main issues to be “short-lived and temporary.”

How Does ADP Compile the Data?

ADP uses payroll data from about 460,000 businesses, which have 26 million workers. That represents about 1/5 of all US private employment. Private employment is non-farm employment.

ADP uses government sources, such as the Bureau of Labor Statistics, to calculate the data. There are two main sources:

  • The quarterly census of employment and wages, from the BLS.
  • Census bureau information about companies and numbers of employees. The census bureau calculates “shares” of employment according to company size.

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.