According to payroll company ADP, a giant in the industry, jobs in the private sector have increased by 230,000 from September to October 2014.
102,000 jobs were added to small businesses according to the ADP National Employment Report with 53,000 in companies with 20-49 employees, midsized businesses with 50-499 employees added 122,000 and large businesses with 500-999 employees adding 14,000 jobs. Kevin Thompson, CPA says “anyone who knows me will agree that I have been saying for ten years that this economy will grow on the backs of Small Business owners. In our seminar series “How to Start and How to Run Profitable Small businesses” we show how the US Economy has made the switch from large employer to small employer based. This is just further evidence.”
Companies with more than 1,000 employees or more decreased jobs by 8,000. Large companies use outside consultants and small companies to perform so many of the tasks that used to be done internally. Thompson says “these large companies know that the work can be done so much more efficiently by smaller, more agile providers.”
ADP President and CEO Carlos Rodriquez issued a statement saying, “The employment rate is improving due to smaller or midsized companies. October’s job growth is the highest since June and the second highest gain of 2014”
The most jobs were added in the service sector with 181,000 added in October. Goods-producing added 181,000 jobs.
Jobs in professional and business including accountants, tax preparers, etc., added 53,000 jobs in October 2014. Financial services added 4,000. Trade, transportation, and utilities added 47,000. Manufacturing – 15,000, construction, 28,000, franchise jobs 16,970, restaurants, 13,000.
Mark Zandi, chief economist at Moody’s Analytics said, “The job market is steadily picking up pace. Job growth is strong and broad-based across industries and company sizes. At this pace of job growth unemployment and underemployment is quickly declining. The job market will soon be tight enough to support a meaningful acceleration in wage growth.”
The U.S. Bureau of Labor Statistics reports that employers in both private and public sectors added 214,000 jobs last month. This fact is sending the unemployment rate down to 1/10% to 5.8% which is the lowest it’s been since July 2008. Job gains for Aug and Sept have been revised by a combined 31,000 jobs by the BLS.
kevin@kevinthompsoncpa.com or call him @ (310) 450-4625.