ADP data shows small businesses with 1-49 workers have been reducing workers for four months. Those with 20-49 workers have shed workers for 7 straight months.
The ADP Employment Report shows the economy added 99,000 jobs in August. That is a considerable slowdown.
Importantly, a breakdown of jobs by firm size shows small businesses have shed jobs for four months.
ADP Total Change in Employment Month-Over-Month
It’s important to note that employment is often positive at the start of recessions. Jobs are a lagging indicator.
ADP Change in Employment by Employer Size Year-Over-Year
Year-over-year jobs at companies sized 20-49 is down by 71,000.
ADP Total Change in Employment Year-Over-Year
Total employment year-over-year is sinking fast, led by small businesses.
Total Employment by Business Size
- 1-19: 34.7 million
- 20-49: 22.9.9 million
- 50-249: 38.8 million
- 250-499: 12.3 million
- 500+: 23.9 million
- Total: 132.4 million
Small businesses (49 and less) are far more important than large businesses.