Small Business Finance News

Small Businesses Cut Jobs, But Unemployment Rate Down For July

Written by Jenna Weiner
Published: 8/5/2011

Small businesses are cutting jobs, according to a national association for business owners.

In what may be mixed news for small businesses, the National Federation of Independent business said 14 percent of small businesses cut jobs.

Business Unemployment Trend

On the other hand, the ADP National Employment Report said that 114,000 private sector jobs were added from June to July. The Labor Department also said that employers added 117,000 jobs last month. The Labor Department reports the July unemployment rate at 9.1 percent.

The NFIB said that while 13 percent cut staff, 12 percent of small businesses polled made new hires this month. William Dunkelberg, NFIB's chief economist, said in a statement that the employment picture remained bleak in July. The ADP report said that small businesses added about 58,000 jobs in July, while medium businesses added 47,000 jobs and big business added 9,000 jobs.

The ADP Report said the service-providing sector grew by 121,000 jobs in July, marking its 19th straight month of improvement.

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