Small businesses create 330,000 jobs from April to May
ADP’s latest employment report shows that small businesses created 330,000 jobs from April to May.
This is up from the 235,000 jobs added from March to April. And in the past two months, 565,000 jobs have been created by small businesses.
ADP Small Business Report – May 2021
The data comes from ADP Search, which released figures from its national employment report this week.
According to the ADP report in May, the 330,000 new jobs can be broken down by company size: 177,000 in companies with 1 to 19 employees and 156,000 in companies with 20 to 49 employees.
The majority of those jobs – 308,000 – were in service industries. The remaining 25,000 new jobs were related to the production of goods.
Job growth in small businesses accounts for more than a third of the national job increase, which is 978,000 for the same period.
ADP National Franchise Report – May 2021
From March to April, franchise jobs increased by 49,600. From April to May, franchise jobs increased by 57,700.
How do the numbers apply to different types of franchise businesses?
Here’s a look at the increases from April to May:
- Restaurants – An increase of 50,200
- Auto Parts / Dealers – An increase of 2,800
- Accommodation – An increase of 8,900
Some franchise numbers have seen a drop:
- Food retailers – down 300
- Real Estate – down 100
- Business services – down 2,700
How does ADP Research compile the data?
ADP uses payroll data from about 460,000 companies, which employ 26 million people. This represents about 1/5 of all US private jobs. Private employment is non-agricultural employment.
ADP uses government sources, such as the Bureau of Labor Statistics, to calculate the data. There are two main sources:
The quarterly census of employment and wages, from the BLS.
Information from the census office on companies and number of employees. The census office calculates the “shares” of employment based on the size of the business.