Risky Business

Economy Loses Over Half a Million Jobs; What About Small Businesses?

By Matthew Bandyk

Posted: December 5, 2008

Everyone is talking about the grim news from the Labor Department that the U.S. economy shed 533,000 nonfarm jobs in November.

How much of these losses are coming from small businesses, as opposed to the large companies like Citigroup, Mattel, and Circuit City, who are laying off many employees?

The jury is still out on that question.  Surveys aimed only on small firms show conflicting results. As my colleague Liz Wolgemuth reported earlier this week, ADP's survey of firms with under 50 employees found that employment decreased by 79,000 in November. But SurePayroll's Small Business Scorecard actually found small business hiring up 3.3 percent overall year-to-date, and up 0.26 percent in November. That's a meager increase, but a far cry from tens of thousands of lost jobs.

I think we'll have to wait for the dust to settle to really figure out what's going on.  In the meantime, there are still questions about whether it's a good cost-saving strategy for small firms to lay off employees. Click here for more on that issue.

jobs

About.com just reported that employers and recruiters use these 3 job sites most to find quality candidates.

www.linkedin.com (professional networking)

www.careerbuilder.com (keyword job search)

www.realmatch.com (matches you to jobs)

Whole Top 10 list here:

http://jobsearch.about.com/od/joblistings/tp/jobbanks.htm

Jennifer of CA @ Dec 13, 2008 17:25:27 PM

The numbers game

If the Detroit auto makers go under, that's only 3 million more jobs lost. But that is also thousands of small businesses that disappear that supply everything that the auto assembly plants assemble. That gets the country to double digit unemployment and makes the U.S. a 3rd world economy that is not emerging, but sinking ever lower.

HillbillyBill of TN @ Dec 05, 2008 14:58:23 PM

The numbers game

If the Detroit auto makers go under, that's only 3 million more jobs lost. But that is also thousands of small businesses that disappear that supply everything that the auto assembly plants assemble. That gets the country to double digit unemployment and makes the U.S. a 3rd world economy that is not emerging, but sinking ever lower.

HillbillyBill of TN @ Dec 05, 2008 14:58:23 PM

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Risky Business

Risky Business

Matt Bandyk, a reporter for U.S. News, explores capitalism from where it all begins, with the entrepreneur, whose risk taking and experimentation provide the roots from which the rest of the economy grows. As much courage as it takes to create one's own business, even the entrepreneur needs some help, and this blog will look at news, trends, and practical advice for starting and running a small business.

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