U.S. small businesses shed jobs in May as private sector sees slow job growth amid tight labor market – Xinhua

Photo taken on June 1, 2022 shows the US Federal Reserve in Washington, DC, the United States. (Xinhua/Liu Jie)

— “The rate of hiring growth has moderated across all sectors, while small businesses remain a cause for concern as they struggle to keep pace with large companies that have exploded in recent years. time,” said Nela Richardson, chief economist at ADP. .

— Large companies hired 122,000 workers, medium-sized companies added 97,000, while small companies cut 91,000 employees, the report said, indicating an unbalanced recovery across different company sizes.

WASHINGTON, June 3 (Xinhua) — Private businesses in the United States added 128,000 jobs in May, indicating slower job growth in a tight labor market, the employment data firm reported Thursday. Automatic Data Processing (ADP) salaries.

“The rate of hiring growth has moderated across all industries, while small businesses remain a concern as they struggle to keep pace with large companies that have boomed in recent times,” said Nela Richardson, chief economist at ADP.

Large companies hired 122,000 workers, medium-sized companies 97,000, while small companies cut 91,000 employees, the report said, indicating an unbalanced recovery across different company sizes.

In February and April, small businesses also shed jobs as large and mid-sized companies saw payroll gains, according to the report produced by the ADP Research Institute in conjunction with Moody’s Analytics.

Small businesses with fewer than 50 employees have lost nearly 300,000 jobs since February as they struggle to hire and retain workers seeking better wages and benefits in a tight market.

According to the National Federation of Independent Business (NFIB) monthly jobs report also released on Thursday, labor shortages continue to be a challenge for small businesses, with 51% (seasonally adjusted) of owners reporting vacancies they have not been able to fill during the current period. , up four points from April.

The NFIB report shows that 23% of owners said the quality of labor was their number one business issue, after inflation, and 12% cited labor costs as their number one issue. business problem.

“The labor force participation rate is slowly rising, but small businesses continue to struggle to fill vacancies,” said NFIB chief economist Bill Dunkelberg.

Overall, businesses are struggling to hire as labor market supply has not been able to meet demand. The number of job openings fell by 455,000 to 11.4 million at the end of April, the US Bureau of Labor Statistics reported on Wednesday.

The office’s monthly jobs report, however, showed the number of unemployed fell slightly to 5.9 million in April, indicating there were about 1.9 jobs for every jobless person.

In its latest Beige Book released on Wednesday, the US Federal Reserve also noted that business contacts tended to cite labor market difficulties as their “biggest challenge”, followed by supply chain disruptions.

“Labour shortages continued to force many businesses to operate below capacity,” the Beige Book said. “In response, companies have continued to roll out automation, provide greater job flexibility, and raise wages.”

The ADP report also showed that the services sector saw a job gain of 104,000 in May, with 46,000 added in education and health services, while the goods-producing sector added 24. 000 jobs.

April’s total of jobs added in private companies was revised down from 247,000 to 202,000, according to the report.

The ADP report came a day before the May jobs report was released by the Bureau of Labor Statistics, which will include employment data from both the private sector and government.

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