According to the ADP National Employment Report, which came out this morning, private sector employment increased by 158,000 in March. That was substantially below the consensus estimate of 197,000, and it was also way down from the revised 237,000 gain in February.
Source: ADP, Moody's Analytics.
However, the most interesting part of the report was how it highlights the importance of small businesses to an economic recovery. Small businesses are typically defined as those that employ fewer than 500 people. Of the 158,000 payroll gains in March, 111,000 came from small businesses. In fact, 74,000 jobs were created by businesses that employ fewer than 50 people.
Only 47,000 jobs were due to hiring from large companies. Yet large businesses are the ones that have the clout and resources to lobby politicians. Perhaps it is time for elected officials who are interested in putting more people to work to start paying more attention to what small business owners have to say.