ADP Report – Mid-Size Companies Adding The Most Jobs

ADP announced that the U.S. private sector added 175,000 jobs in January. The data shows mid-size companies adding the most jobs.

Since the official end of the Great Recession the ADP data shows the private sector has added 7,418,000 jobs.

The number of jobs added by company size category follows.

1 to 19 employees

  • 1,477,000 jobs added.
  • 19.9% of total jobs added.
  • 25.9% of private sector jobs.
  • 5.2% growth since the end of the recession.
    (See chart below for jobs added since the end of the recession).

20 to 49 employees

  • 1,191,000 jobs added.
  • 16.1% of total jobs added.
  • 15.9% of private sector jobs.
  • 7.0% growth since the end of the recession.

50 to 499 employees

  • 2,674,000 jobs added.
  • 36.0% of total jobs added.
  • 35.6% of private sector jobs.
  • 7.0% growth since the end of the recession.

500 to 999 employees

  • 474,000 jobs added.
  • 6.4% of total jobs added.
  • 6.9% of private sector jobs.
  • 6.4% growth since the end of the recession.

1,000+ employees

  • 1,602,000 jobs added.
  • 21.6% of total jobs added.
  • 15.8% of private sector jobs.
  • 9.7% growth since the end of the recession.

Jobs have been added across all size categories. The data show the following:

  • Well-established large companies (1,000+ workers) have added jobs at the fastest rate, 9.7%.
  • The 50 to 499 category has added the highest percentage of jobs 36.0%.
  • The 50 to 499 category is the largest category, 35.6% of private sector jobs.
  •  The 50 to 499 category has added the greatest number of jobs, almost 2.7 million.

The most encouraging news is the recent increase in the growth of smaller companies.
Mid-size companies adding the most jobs

©Copyright 2011 by CBER.

Large Establishments Have Added More Workers than Small Establishments Since End of Recession

The latest ADP data shows that large companies (500+ workers) have added more private sector jobs than small companies (fewer than 20 workers) since the end of the recession.  More specifically,

  • Employment at establishments with fewer than 20 workers is 25.9% of total private sector employment. These establishments have accounted for 18.7% of total jobs added, or 1.0 million jobs.
  • Employment at establishments with 20 to 499 workers is 51.6% of total employment. These establishments have accounted for 53.6% of total jobs added, or 3.0 million jobs.
  • Employment at establishments with 500+ workers is 22.5% of total employment. These establishments have accounted for 27.7% of total jobs added, or 1.5 million jobs.

Since the end of the recession, 5.5 million private sector jobs have been added.

Since the series began in 2005, the small companies have added more workers than the large companies. More specifically,

  • Employment at establishments with fewer than 20 workers has increased by 1.9 million workers.
  • Employment at establishments with 20 to 499 workers has increased by 1.8 million.
  • Employment at establishments with 500+ workers has decreased by 1.1 million.

Private sectors jobs have increased by 2.6 million since the beginning of 2005.

Over the past 8 years, the small, medium, and large establishments have contributed to the economy in different ways.

©Copyright 2011 by CBER.

Recovery from Recession Led by Large Companies

Large and small companies have had different employment patterns over the past 7-8 years.

According to employment data produced by ADP, about 17.6% of total private sector workers were employed at small companies, those with 1 to 19 workers, in January 2005. Companies with 500+ workers accounted for 17.1% of private sector employment.

Between 2005 and April 2013 the small companies expanded at a faster rate. The most recent ADP data shows the smaller companies currently account for 18.3% of private sector workers and the larger companies account for 15.9%.

The small companies had the least number of workers in January 2005. Jobs were added until July 2008, when they peaked. Employment tapered off slowly until December 2010. The number of jobs has been on the rise since.

Employment at larger companies increased slowly from January 2005 until March 2006. At that time employment began to taper off and declined for six years. Steady increases have occurred since March 2010.

The Great Recession officially ended in June 2009. Since then the small companies have added about 1.03 million workers and the large companies have added about 1.58 million.  In other words, large companies have played a greater role in the recovery than the small companies.

©Copyright 2011 by CBER.