US businesses with less than 20 employees have eliminated 594,000 jobs since December 2021, while firms with 20 to 49 workers shed jobs for a second-straight month in February.
(Bloomberg) — US businesses with less than 20 employees have eliminated 594,000 jobs since December 2021, while firms with 20 to 49 workers shed jobs for a second-straight month in February.
The numbers suggest growing financial pressure on smaller companies as the Federal Reserve hikes interest rates. Small businesses are often more sensitive to higher rates than larger ones, since they don’t have the ability to lock in borrowing costs on the bond markets. More Americans work at firms with less than 20 employees than at those with at least 250 workers.Â
Overall, private payrolls rose 242,000 last month, exceeding economist forecasts, according to figures published Wednesday from ADP Research Institute in collaboration with Stanford Digital Economy Lab. The net gains came among firms with at least 50 workers, while small firms shed jobs for a fifth straight month.
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