Small businesses lost 1,000 jobs this month, according to payroll giant ADP, but the private sector overall saw an increase of 13,000 jobs.
The biggest gains were in midsized businesses with between 50 and 499 employees, which registered an increase of 11,000 jobs. While small businesses with less than 50 employees lost 1,000 jobs in June, Small-business employment in the service-providing sector actually increased by 20,000, the sixth consecutive monthly increase, according to Joel Prakken, chairman of Macroeconomic Advisers, which compiles the monthly employment reports for ADP. Small businesses in the goods-producing sector lost 22,000 jobs in June, according to the report.
In contrast, Intuit reported Tuesday that its small business payroll clients added 18,000 jobs in June across various industries, with small businesses defined as those having fewer than 20 employees (see Intuit: Small Businesses Added 18,000 Jobs in June). The U.S. Bureau of Labor Statistics will report its job numbers on Friday.
Unlike the estimate of total establishment employment to be released on Friday by the Bureau of Labor Statistics, todays figure does not include the effects of federal hiring for the 2010 Census, said Prakken. Hiring for the census may have peaked in May. For this reason, Fridays figure for the change in nonfarm total employment reported by the BLS might be weaker than todays estimate for nonfarm private employment in the ADP Report.
ADPs report also found that large businesses with more than 499 employees gained 3,000 employees in June. Overall, the goods-producing sector lost 17,000 jobs, while the service sector gained 30,000 jobs. The manufacturing industry alone gained 16,000 jobs this month, according to ADPs payroll numbers.
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