SMEs fuelling US employment growth

SMEs were the driving force behind a 200,000 rise in US private sector employment between February and March, according to the latest National Employment Report from business process outsourcer ADP.
Thu, 31 Mar 2016

SMEs were the driving force behind a 200,000 rise in US private sector employment between February and March, according to the latest National Employment Report from business process outsourcer ADP. 

Employment in companies with fewer than 49 employees saw the strongest growth in jobs, rising by 86,000 from 68,000 in February. Medium-sized companies with between 50 and 499 staff on the payroll also took on more staff, with the number of new jobs rising by 75,000 from 60,000 in February. 

However, job creation at the US’s largest companies – those with 500 or more staff – faltered, with only 38,000 jobs added, half February’s figure of 77,000.  

The trade, transportation and utilities sector had its best month of employment gains since last June, adding 42,000 jobs compared with 24,000 in the previous month.

Mark Zandi, chief economist at Moody's Analytics, said the March job gain of 200,000 is consistent with average monthly job growth of the past four years or so. “The only industry reducing payrolls is energy as has been the case for over a year. All indications are that the job machine will remain in high gear."

The report, which is derived from ADP’s actual payroll data, measures the change in total non-farm private employment each month on a seasonally-adjusted basis.


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