Job Numbers Take a Dip: What's Happening to Small Businesses?

In November, the U. S. job market took a hit. Private companies let go of 32, 000 workers, and small businesses felt the pinch the most. This wasn't good news, and it was worse than experts thought it would be. Just a month before, in October, there was a small gain of 47, 000 jobs. But November's numbers didn't just stop growing; they went down. Big businesses, those with 50 or more employees, actually added 90, 000 jobs. But small businesses, those with fewer than 50 workers, saw a big drop. Firms with 20 to 49 employees lost 74, 000 jobs. Overall, this was the biggest drop since March 2023. Some industries did better than others. Education and health services hired 33, 000 new workers. Leisure and hospitality added 13, 000 jobs. But many other industries saw job losses. Professional and business services lost 26, 000 jobs. Information services lost 20, 000, and manufacturing lost 18, 000. Both financial activities and construction saw losses of 9, 000 jobs each. Pay raises also slowed down. Workers who kept their jobs saw a 4. 4% increase in pay over the year, which was a slight drop from October. Experts say hiring has been up and down lately. Employers are being careful because consumers aren't spending as much, and the economy is uncertain. Small businesses are feeling this the most. This news comes just before the Federal Reserve meets to decide on interest rates. There's a good chance they'll cut rates, but not everyone agrees that's a good idea. Some worry that cutting rates too much could make inflation worse. Inflation has been higher than the Fed's target of 2%. The official job numbers from the Bureau of Labor Statistics will come out later. But for now, the picture isn't looking great, especially for small businesses.