Small businesses gain ground; employ over 50% of private-sector workers
Driving the employment trend:
- Big companies — defined by the SBA as those with 500 or more employees — are more likely than small businesses to shed workers during recessions and slow-growth economies.
- Big corporations are more likely to be in manufacturing, a sector ripe for replacing workers with automation through investments in technology.
- Small companies are often in service industries such as consulting and health care, fields that require workers rather than machinery
- Planned job cuts, especially in the automotive industry, soared 54%, to 100,315, last month from August, according to outplacement firm Challenger Gray & Christmas.
CEOs of Fortune 500 companies have grown more pessimistic about hiring, according to the Business Roundtable's most recent quarterly survey. 32% of CEOs said they expected U.S. employment would be higher in the next six months, down from 41% in the previous survey.