Every month, and only 2 days before the federal employment report, a large private payroll processing company, ADP, releases their own version. The latest report, issued yesterday, was a big miss; showing that only 156,000 jobs were created in the month. This was far short of the projected gains of 196,000 workers.
And if a 25% miss in job growth wasn't bad enough, the internal numbers showed that small businesses (those with less than 50 employees) added the bulk of the 156,000 with a total of 93,000 new jobs. Large businesses, with 500 or more employees, only added 24,000 jobs. The problem with small business job growth is that they pay, on average, only 66% of what larger businesses paid in the report in 2011. However, the Washington Post article that this statistic comes from, also noted that the disparity in salaries between large and small businesses has been growing for years. For example, in 2001, it was only 78%.
The fact is, that under Obama, we have created too many low wage jobs. The middle class, as a percentage of all classes, has reached a 50 year low. This is also why I cringe when Hillary Clinton claims she wants to be "The Small Business President". This ADP report just proves that employment in this country is going in the wrong direction. To reverse this, we need to lower the corporate tax rates and reduce regulations that are interfering with all business growth; especially large businesses. And, we need to allow over $2 trillion dollars in overseas profits to be brought back here without being taxed so that companies may consider building more manufacturing here than sending jobs to Mexico and elsewhere.
Private sector adds 156,000 jobs in April vs. 195,000 expected: ADP: http://www.cnbc.com/2016/05/04/private-sector-payrolls-april-2016.html
Big firms pay 50 percent higher wages than small businesses, study shows: https://www.washingtonpost.com/business/on-small-business/big-firms-pay-50-percent-higher-wages-than-small-businesses-study-shows/2012/11/28/e24a1f58-3970-11e2-a263-f0ebffed2f15_story.html
Middle Class Pay Hits 50 Year Low Under Obama - Breitbart: http://www.breitbart.com/big-government/2015/01/21/middle-class-hits-50-year-low-on-president-obamas-watch/
Video: Small Business President | Hillary Clinton: https://www.youtube.com/watch?v=uDBHD7cKvhQ
Collapse of U.S. Growth Puts Business Tax Cut At Center of the Election: http://www.nysun.com/national/collapse-of-us-growth-puts-business-tax-cut/89565/