Moody’s Analytics and payroll provider ADP released their latest small business hiring data on Wednesday (August 1), with analysts describing the current trend as “erratic.”
Reports in CNBC said small businesses (businesses with fewer than 50 employees) added 52,000 jobs last month — up from 31,000 jobs in June. On average, small firms added 48,000 jobs each month in the first seven months of the year, ADP said.
It’s significantly lower than the 71,000 jobs added each month, on average, in the first seven months of 2017, researchers noted. ADP added that monthly job gain totals vary widely, ranging from 28,000 to 64,000.
Separate reports in SFGate pointed to inconsistent small business job gains compared to larger businesses. Reports suggest the struggle to find qualified workers in a tight labor market, and the reluctance to increase head counts until revenues increase as possible reasons why small business hiring has been inconsistent.
ADP’s data was released at the same time it published stats on hiring in the U.S. overall. Corporates of all sizes increased jobs by 219,000 last month, surpassing expectations of 185,000. Job gains for July were the best they have been since February.
“The job market is booming, impacted by the deficit-financed tax cuts and increases in government spending,” Moody’s Analytics chief economist Mark Zandi said in a statement. “Tariffs have yet to materially impact jobs, but multinational companies shed jobs last month, signaling the threat.”
“The labor market is on a roll with no signs of a slowdown in sight,” added ADP Research Institute vice president and co-head Ahu Yildirmaz.“Nearly every industry posted strong gains and small business hiring picked up.”
The latest jobs figures were released the same day ADP announced it reached a deal to acquire Celergo, a multi-currency payroll provider. The financial terms of the deal were not reported, but ADP said the multi-currency payroll outsourcing market is valued at more than $3 billion today.