BY: Adam Gavriel
Reports indicate that in August, and for the fifth consecutive month, small business growth declined in the United States.
According to Intuit’s Small Business Employment Index, growth declined from .2% in July to 0.16% in August as small business created just 30,000 new jobs. This number is not so shocking when compared to the fact that average monthly compensation for small business grew by just $2, compared to July when it grew by $7.
The survey continued to show that small business revenue fell by 0.6% from July to August. The retail industry, food services sector, and real estate services were all hardest hit.
Susan Woodward, an economist who worked with Intuit to create the indexes, noted that the employment rate has been slowing since April, and revenue has been falling since March.
This discouraging news comes out the day after the beginning of the Democratic National Convention, and just a week after the Republican National Convention ended. Not to get too political, but it’s discouraging that Democrats read these numbers as, “continued growth,” since the sector is not losing any jobs. What the DNC is not stating, as Ms. Woodward notes, is that the growth has been declining since the beginning of this year.
As anyone who’s ever worked for a living will tell you, small businesses are the engine that drives American employment. Small businesses owners are responsible for employing half of all private sector employees and make up 60-80% of the entire employment workforce. Not only this, but over the past 18 years small business have generated 65% of all new jobs.
When the small business sector of America is in decline, American unemployment feels the heat.
As a smal lbusiness ourselves, Crossroads Consulting not only employs Americans, but our entire purpose is to help YOU get employed as well. Whetehr it’s working with you in making sure your resume is right, to finding you the job of your dreams; we’re here to, “Put the ‘human’ back into ‘human resources.'”
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