Small Businesses Add 330,000 Jobs from April to May


The latest jobs report from ADP shows that small businesses added 330,000 jobs from April to May.

That’s up from the 235,000 jobs added from March to April. And over the last two months, 565,000 jobs were added by small businesses.

ADP Small Business Report – May 2021


The data comes from ADP Research, which released the numbers for its National Employment Report this week.

According to the May ADP report, the 330,000 new jobs can be broken down by size of business: 177,000 from businesses with 1-19 employees and 156,000 from businesses with 20-49 employees.

The majority of those jobs -308,000 – were in service industries. The remaining 25,000 new jobs were related to production of goods.

The growth in small business jobs accounts for more than a third of the national increase in jobs, which is 978,000 for the same time period.

ADP National Franchise Report – May 2021


From March to April, franchise jobs increased by 49,600. From April to May, franchise jobs increased by 57,700.

How do the numbers apply in the various types of franchise businesses?

Here’s a quick look at the increases from April to May:

  • Restaurants – An increase of 50,200
  • Auto parts/dealers – An increase of 2,800
  • Accommodations – An increase of 8,900

Some franchise numbers saw a decrease:

  • Food retailers – down 300
  • Real estate – down 100
  • Business services – down 2,700

How Does ADP Research 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.

Images: ADP

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Lisa Price Lisa Price is a staff writer for Small Business Trends. 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.

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