Tag: Private Sector

ADP Report – Mid-Size Companies Adding The Most Jobs

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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.

Will Colorado Output Continue to Expand as Slower Rate than U.S.?

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Between 1997 and 2012, the Private Sector Real GDP and job growth for Colorado outpaced the nation.  For this period, data released by the Bureau of Economic Analysis and the Bureau of Labor Statistics shows:

  • The annualized rate of growth for U.S. Private Sector Real GDP (sum of all states) was 2.3% and private sector wage and salary employment expanded at a rate of 0.5%.
  • The compound growth rate for Colorado Private Sector Real GDP was 3.1% and private sector nonfarm jobs grew at a rate of 0.9%.

More recently, the data tells a different story.  Colorado did not fare as well as the nation between 2009 and 2012.  While the rate of job growth was similar, U.S. output expanded at a faster rate.

  • The annualized rate of growth for U.S. Private Sector Real GDP (sum of all states) was 2.5% and private sector wage and salary employment expanded at a rate of 1.1%.
  • The compound growth rate for Colorado Private Sector Real GDP was 2.2% and private sector nonfarm jobs grew at a rate of 1.1%.

Time will tell whether the Colorado output will continue to grow at a slower rate than the U.S. or if this is a short-term variance that will reverse itself in 2013 or 2014.

Private Sector Real GDP
©Copyright 2011 by CBER.

The Colorado Economy is Outperforming the U.S.*

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Earlier this year, President Obama sparked a debate about the health of the economy when he said, “The private sector is doing fine.”

At the national level, the private sector began adding jobs in February 2010 and has consistently added jobs since. The private sector has regained about 48% of the jobs lost in the recession, as compared to the peak in 2008. That part of the debate is clear.

On the other hand, the number of total government jobs has been on the decline since January 2008 (temporary employment associated with the 2010 Census is excluded). Shrinking budgets have caused federal, state, and local agencies to tighten their belts.

Closer to home, Colorado leaders are proudly proclaiming that the state is recovering faster than the U.S. Unfortunately, the sense of optimism displayed in this statement requires an asterisk.

The state’s private sector began adding jobs in January 2010. It has regained about 49% of the jobs lost in the recession, as compared to the peak in 2008. By this measure of improvement, Colorado’s private sector is recovering from the recession at a similar rate as the U.S. Whether that level of growth is “fine” is a debate for a different time. (It should also be noted that current private sector employment is below the peak prior to the 2001 recession.)

Government employment is the difference maker. In contrast to the national level where there is a decline, the number of government jobs in Colorado has increased slightly since 2009. As a result, total Colorado employment has regained jobs lost in the recession at a faster rate than the U.S.*

 

©Copyright 2011 by CBER.