Small and Medium Businesses Lead in New Job Generation.
According to ADP’s National Employment Report, nonfarm private small businesses (with 49 or fewer employees) created 82,000 jobs in May. Within small businesses, 58 percent of the employment growth was generated from companies with between one and 19 employees. Medium-sized businesses (with 50-499 employees) also showed gains, with 61,000 jobs created. Large businesses (with 500-1,000-plus employees) trailed, with 37,000 jobs created in May. The three industries showing the greatest new job growth were professional/business services, trade/transportation/utilities and construction. Derived from ADP payroll data, the report measures the seasonally adjusted change in total nonfarm private employment each month.
Small Businesses Cautiously Optimistic About the Economy.
The National Federation of Independent Business (NFIB) Optimism Index, a monthly industry survey, rose in May for the third straight month by 1.4 points to 96.6. It’s the highest reading since September 2007, although the NFIB cautions that’s still significantly below expected readings that would signify an expansion. Of the 10 index components, five readings that involve expectations about sales and business conditions improved; one was unchanged; and four related to GDP and employment growth (job openings, job creation plans, inventory and capital spending plans) fell slightly.
Utah and Idaho Rank Among the “Friendliest” States for Small Businesses.
Thumbtack.com’s third annual Small Business Friendliness Survey, performed in partnership with the Ewing Marion Kauffman Foundation, features results from more than 12,000 small businesses, which rated their states on how friendly they are to entrepreneurs. Leading the pack, the friendliest states for small businesses were Utah, Idaho, Texas, Virginia and Louisiana, while California, Rhode Island, Illinois, Connecticut and New Jersey were at the bottom of the list. Survey participants ranked friendliness of professional licensing requirements as the most important issue in determining a state's overall friendliness to small business, closely followed by ease of filing taxes.