ADP: Small business hiring picked up moderately in April
Small business hiring picked up moderately last month as owners held to their strategy of cautiously adding to their payrolls.
That report comes from payroll company ADP, which counted 62,000 new jobs at its customers with up to 49 employees. The April number rebounded from a downwardly revised 42,000 in March.
Small company owners are hiring more cautiously than companies overall. Businesses of all sizes added a robust 204,000 jobs last month, the sixth straight month that 200,000 or more jobs were created, ADP said. Small businesses have added an average of nearly 66,000 jobs over that time, but since the start of this year, they've averaged more than 56,000 as hiring slowed.
In the same period a year earlier, they created on average 82,000 jobs a month.
The slower hiring isn't a sign of trouble at small businesses, but instead a change in strategy from before the Great Recession. More than decade ago, owners' philosophy was to hire in anticipation of new business. Today, many won't hire until they have enough new revenue to justify taking on more workers.
Surveys taken recently by banks and small business advocacy groups show that at most, a third of small businesses plan to expand their staffs in the next 12 months.