Small businesses nationally shed 105,000 jobs in past 3 months

Small businesses nationally shed 105,000 jobs in past 3 months

Hartsville Messenger
August 5, 2019

From staff reports

COLUMBIA, S.C. – The Department of Labor released its national jobs report last week indicating that the nation added 164,000 jobs in July.

The ADP National Employment Report also released a report saying that 156,000 new jobs were added last month.

However, small businesses with fewer than 20 employees shed 18,000 jobs in July according to the ADP National Employment Report. This was the third consecutive month of jobs lost from these small businesses (down 50,000 in May and 37,000 in June). The three-month total is 105,000.

“Businesses with fewer than 20 workers are vital to our economy and represent 67% of all small businesses,” said Frank Knapp Jr., president and chief executive officer of the South Carolina Small Business Chamber of Commerce. “Small businesses are the first to feel a faltering economy and the last to fully recover from a recession.”

Small businesses are suffering the brunt of the slowdown, said Mark Zandi, chief economist at Moody’s Analytics.

“Hampering job growth are labor shortages, layoffs at bricks-and-mortar retailers and fallout from weaker global trade,” Zandi said.

Most net new jobs come from businesses with four or fewer employees and that are less than 5 years old, Knapp said.

“Start-ups are crucial to a sustainable, growing economy,” Knapp said. “Unless something happens to turn these small business jobs numbers around, we are on the verge of serious economic downturn.”

The South Carolina Small Business Chamber of Commerce is a statewide advocacy organization founded in 2000. With more than 10,000 small business and entrepreneur supporters, it has successfully worked to make South Carolina more small-business friendly in areas such as health care, taxation, regulation, worker training, energy/conservation, workers’ compensation and economic development.

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