Small business might not report of cutting thousands of workers but collectively, small businesses account for an estimated 414,000 jobs nationwide in April. Small business employment 15 month in a row where employment of small businesses have gone down a report by payroll processing group ADP indicated.
As part of cost-cutting efforts, small businesses are looking at trimming costs on an hour-to-hour and worker-to-worker basis. The complication for small businesses is that they tend to foster personal relationships with their employees. But with the recession still hitting all industries hard, the economy leaves businesses with little choice but to shave off personnel expenses.
This month’s employment falloff is the smallest since October, but the numbers still indicate that the recession is deep and ongoing. Small companies are being hit harder right now than larger ones: Companies with more than 500 employees dropped only 77,000 jobs in April, according to ADP’s estimates.
“The recession continues to spread beyond manufacturing and housing-related activities to almost every area of the economy,” said Joel Prakken, chairman of Macroeconomic Advisors, a research firm that works with ADP.
Source: CNN
