Aug 12, 2008

Small Businesses Keep the Economy Afloat

In an economy that is barely staying afloat, small businesses are coming to the rescue and helping the U.S. economy keep its head above the water, according to the latest data from the ADP Employment Report.

Employment in the private sector rose by 9,000 jobs across the country from June to July, sparked by an increase of 50,000 jobs among small businesses. By contrast, large businesses shed 32,000 positions, according to the recently released ADP National Employment Report.

The hardest hit sectors of the economy continue to be residential construction and financial activities related to home sales and mortgage lending. In July, construction employment dropped 16,000, marking the twentieth consecutive monthly decline, bringing the total decline in construction jobs since the peak in August of 2006 to 350,000.

The National Small Business Association believes the only way the U.S. economy can bounce back is through the fostering of the U.S.’s engine of economic growth: small business. The ADP Employment report further demonstrates the significant impact small business is having on the U.S. economy. Having created more than 93.5% of all new net jobs over the last 20 years, it is crucial that entrepreneurs have access to the tools and capital they need to continue to grow their business and help strengthen the economy.