Small business was booming in the first quarter of 2017. According to the ADP’s Small Business Employment Report, released today, small businesses added 118,000 jobs in March – up from 104,000 jobs in February and 62,000 jobs in January. The ADP’s small business employment report looks at job growth specific to businesses with 49 or fewer employees.
A Closer Look at the Numbers
When looking at small businesses by size, very small businesses (those with 1-19 employees) added 60,000 jobs in March (up from 51,000 jobs in February), and other small businesses (20-49 employees) added 58,000 jobs (up from 53,000 jobs in February). Comparing industries, small businesses in the goods-producing sector added 32,000 jobs in March – down from 39,000 jobs in February, while the service-producing sector added 86,000 jobs – up from 65,000 jobs added in February.
Comparison to Overall U.S. Job Growth
Small businesses added more jobs than both mid-sized and large businesses in March. Mid-sized businesses added 100,000 jobs (not quite as many as the 122,000 jobs added in February), and large businesses added 45,000 jobs (down from 72,000 jobs added in February). Overall U.S. job growth, however, exceeded economists’ expectations. According to the ADP’s national report, the U.S. added 263,000 private sector jobs in March (economists expected 185,000).
The goods-producing sector added 82,000 jobs overall in March (compared with 106,000 in February) and in the service-producing sector, the U.S. added 181,000 jobs (compared to 193,000 in February).
The industries adding the most jobs were professional and business industries (57,000 jobs), leisure and hospitality (55,000) and construction (49,000). Only one industry, information, reported losses (-10,000).
Small businesses continue to be a powerhouse of job creation for this country. If you’re among the many small business employers adding headcount right now, take the time to make sure you’re hiring the right people. Start by knowing the facts about background checks and consider using pre-employment tests to assess potential employees. For more hiring advice, visit CareerBuilder’s small business resources page.
What did you think of today’s ADP employment report? Tweet me at @CBpetej