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June 29, 2010

Unequal pain

Finally the job market appears to be turning around for the better, but when we look back at where the job losses occurred during the recession, do we see any difference by size of business?

Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"We do. ... In fact, the pain has not been distributed equally among size of business. Small businesses have been hit very, very hard. For example, businesses with under 50 employees, which actually account for 40 percent of all jobs, actually were responsible for losing half of all the jobs between December 2007 and June of 2009.

"Now you did mention we are beginning to see a job turnaround, and we are -- during this turnaround, we are -- seeing the same kind of pattern. That is, larger businesses have actually been gaining jobs. Businesses with 50 to 250 employees have about broken even, and businesses with more than 250 employees have gained jobs since June of 2009, but small businesses unfortunately have continued to lose jobs. So it is really the small business that has really taken the brunt of these job losses."

Posted by deeshore at June 29, 2010 08:56 AM