Small businesses lost 144,000 jobs in January 2022, according to the ADP National Employment Report.
Small businesses with fewer than 19 employees lost 106,000 jobs. Small businesses with 20-49 employees lost 36,000 jobs.
The total job loss for all businesses (small, medium and large) was 301,000, but small businesses were hardest hit.
ADP Small Business Jobs Report – January 2022
The Omicron variant was blamed, but its effect was deemed “likely temporary” by ADP Chief Economist Nela Richardson.
“Leisure and hospitality saw the largest setback after substantial gains in the fourth quarter of 2021,” Richardson said. “Small businesses were hit hardest by losses, erasing most of the job gains made in December 2021.”
In December 2021, small businesses had a 204,000 jobs gain.
Where Were the Small Business Jobs Losses?
The majority of the losses, 121,000 jobs, were in the service-providing sector. Of those, small businesses with fewer than 19 employees lost 89,000 jobs. Small businesses with 20-49 employees lost 32,000 jobs.
In the goods-producing sector, small businesses lost 23,000 jobs. Small businesses with fewer than 19 employees lost 17,000 jobs while those with 20-49 employees lost 6,000 jobs.
Franchise Jobs Report – January 2022
Franchises saw a gain of 1,600 jobs. Here’s where franchises gained jobs: 6,000 jobs for restaurants, 4,800 for auto parts/dealers and 600 for accommodations.
Franchises also lost jobs: 500 in food retailers, 400 in business services and 100 in real estate.
This article, “Small Businesses Down 144,000 Jobs in January 2022” was first published on Small Business Trends