Small businesses lost 120,000 jobs from March to April, according to the ADP National Employment Report issued May 4, 2022. That’s despite the country seeing total job growth of 247,000 (medium-sized and large companies) over the same period. Franchise jobs also saw an increase, with 47,400 jobs.
Why are small businesses losing jobs?
ADP chief economist Neela Richardson said small businesses are struggling to find workers. “As the job market tightens, small businesses with fewer than 50 employees struggle with competition for wages and higher costs.”
Small businesses with 1-19 employees lost 96,000 jobs, the majority (about 83,000) in the service industry. The goods producing sector lost 12,000 jobs.
Small businesses with 20 to 49 employees lost 25,000 jobs. The service sector lost 20,000 jobs and the high-production sector lost 4,000 jobs.
Franchise companies add 47,400 jobs
During the same period, franchisees created 47,400 jobs. The majority of those gains were in restaurant chains, at 32,100. The auto parts/dealer industry saw 6,800 jobs added and accommodations 3,400 jobs. What is going on? Are service workers going to franchises like restaurants, lodging, and auto service centers in search of better standard wages? There is no data available to answer that question.
Other franchise gains were in business services (1,700) and real estate (300). Food retailers were flat, with no job gains or losses.
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