Small businesses created 34,000 private sector jobs in September, according the ADP’s most recent Small Business Employment Report. The ADP reports job growth specific to businesses with 49 or fewer employees, due to the important contribution small businesses make to economic growth.
Looking at company size, both very small businesses (those with 1-19 employees) and other small businesses (those with 20-49 employees) added 17,000 jobs.
Looking at separate sectors, very small businesses in the goods-producing sector lost 2,000 jobs, while other small businesses held steady. In contrast, very small businesses in the service-providing sector added 19,000 jobs, other small businesses added 17,000 jobs.
Looking at overall national job growth, the ADP reports the U.S. added 154,000 private jobs in August. Medium-sized businesses added 56,000 jobs, and large businesses added 64,000.
While the U.S. added fewer than expected jobs – economists predicted an addition of 169,000 jobs – the slowed job growth may be related to the low unemployment number. Moody’s Analytics chief economist Mark Zandi says job growth “should be expected to slow as the U.S. nears full employment,” according to Marketwatch.
It will be interesting to see what the Labor Department’s release on Friday will show. In the meantime, remember that even if adding headcount is not on your mind right now, retaining high performers should always be. Make an effort to understand what compels employees to stay (or leave) and find new ways to ramp up employee engagement.