Small businesses facing job decline?
The labour market showed signs of recovery in September, with a significant overall job growth of 568,000 across all businesses. This growth was predominantly driven by the private sector, where 354,000 of the new jobs were created in firms with 1,000 or more employees.
Small Businesses and Job Growth
Small businesses, those with fewer than 50 employees, also contributed to the job market recovery. In September, they added 63,000 jobs. The majority of this growth, approximately 43,000 jobs, came from businesses with 20-49 employees. Smaller businesses with 1-19 employees added 10,000 jobs, while those with fewer than 20 employees added 14,000 good producing jobs.
Service Providers Lead the Way
Within the small business sector, service providers were the leaders in job growth. They added 39,000 jobs in September. Leisure and hospitality, in particular, saw a surge with 226,000 new jobs, making it the leader among service providers. Restaurants led the franchise job growth with 12,400 jobs, and accommodations increased by 5,300 jobs.
On the other hand, business services saw a minor loss of 300 jobs in September. Food retailers, however, experienced a minor increase of 200 jobs. Auto parts/dealers rose by 5,600 jobs during the same period.
The Third Quarter Slowdown
Compared to the first two quarters of the year, small businesses experienced a slowed recovery in job creation in the third quarter of 2021. This slowdown was primarily due to ongoing economic uncertainties, bureaucratic hurdles, and the challenges of adapting to digital transformation at a sustainable pace. While digital commerce generated strong growth, it also required adjustments and policy support to avoid being bogged down by bureaucracy.
Despite these challenges, the job market continues to show signs of recovery, offering hope for a stronger economic future.
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