June 16, 2015
Read the full article on Dr. Ed's Blog
Notwithstanding politicians’ claims, businesses create jobs, not Washington. To be more exact, it is small businesses started and run by entrepreneurs that create most of the jobs in our economy.
ADP, the payroll processing company, compiles data series on employment in the private sector of the US labor market by company size. The series start during January 2005. Since then through June 2015, small companies with 1-49 employees added 5.1 million workers and had payrolls totaling 50.2 million. Medium-sized companies with 50-499 employees added 3.8 million workers and had payrolls totaling 43.0 million. Large companies with 500 workers or more cut 234,000 from their payrolls, which totaled 26.5 million.
Small and medium-sized companies currently account for 42% and 36% of private payrolls, according to ADP. Large companies account for just 22% of total private payrolls, down from 24% at the start of 2005.