Small Business Drives Job Growth in January
ADP announced that 170,000 jobs were created in the month of January, and that growth was largely driven by small businesses.
“The data is encouraging,” Joel Prakken, chairman of Macroeconomic Advisors, said in a CNBC interview today. “Not just the employment numbers but ancillary numbers look promising,” he said, referring to earlier reports that requests for banks loans among small business owners are up.
The report cited 95,000 jobs created by businesses with under $50 million in revenue; an additional 72,000 jobs came from medium-sized businesses with revenues from $51 million to $499 million. Just 3,000 jobs were created by large companies in January.
While the numbers continue to trend up, Prakken says the U.S. is not out of the woods yet on unemployment. “We need monthly gains twice as big as this, for months on end, to climb out of the employment hole we are in,” he said. “I’m encouraged, but would like to see more.”
ADP reports private-sector jobs growth. The Labor Department will release its monthly unemployment numbers on Friday.