We often hear that small business is the primary engine of job growth in our country, and to a certain extent that is absolutely true. Small businesses - defined as those with fewer than 50 employees - hired 3 million workers in the second quarter of last year, the Labor Department said yesterday. That's more than half of all new employees, even though small business accounts for just 30 percent of all private sector jobs.
That's the good news, but there's a downside to this as well. Small businesses also accounted for a disproportionate number of layoffs as well - 2.8 million job losses could attributed to that category for the second quarter. The net new number of jobs in small businesses was 158,000.
In the same time frame, mid-sized companies (defined as those with 50 to 249 employees), added just 1.1 million jobs, but they also lost only 900,000 jobs. So the net for that category, 161,000 new jobs, actually exceeded the net job growth for smaller companies.
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