By all accounts, January was a mediocre month for job growth. But according to an article published today, February 5 on Fox Business, small businesses led the job creation charge. The article, citing payroll firm ADP's National Employment Report, noted that out of the 175,000 jobs created in January, 75,000 of those were created by businesses with less than 50 employees.
That stands in stark contrast to the jobs created by large companies of 500 or more employees, which only created 34,500 jobs. Mid-size businesses of 50 to 499 employees added 66,000 to their payrolls.
But even though small businesses came out ahead in hiring in January, it still is the slowest pace for small business job growth since August 2013, according to the article. And manufacturers definitely didn't do very well in January: companies with fewer than 20 employees that were in the service business added 37,000 new jobs, while small manufacturers with less than 20 employees added only 6,000. For companies with between 20 and 49 employees, the numbers were even worse. Service providers hired 37,000, while manufacturers trailed by adding a paltry 5,000 jobs
This news comes on the heels of 2013's wan job growth, which CNN reports ended with the weakest job growth in years. In December 2013, only 74,000 jobs were added. This came as a surprise to economists, who were expecting 193,000 new jobs to be added. And the drop in unemployment numbers was largely attributable to workers leaving the labor force, according to the CNN article. The current adult labor force participation is 62.8 percent, the lowest it's been since 1978. This number factors in people who are working as well as those looking for jobs.