The job market has not recovered since the 2008 recession, but small business hiring is gaining momentum as 2015 continues. The high value of the dollar allows these small companies to employ workers domestically. Firms with under 50 employees are expected to help the job market the most and contribute to more than half of all payroll gains. The year has already shown promising results for the job market. Payroll processor ADP estimated that small businesses added 103,000 jobs in February this year and 108,000 in March despite slow growth at large companies.
Although smaller companies are thriving, large corporations are unable to add jobs as rapidly due to the strong dollar. When recovering from the recession, bigger companies were able to add jobs in international markets. However, the strong dollar makes U.S. goods more expensive for overseas buyers, and big companies will not able to hire as many workers as small companies this year.
In addition to a stronger U.S. dollar, money is more available to small businesses than in 2008. With energy prices low, consumers are able to spend more money on local businesses, making consumer demand high for many businesses with under 50 employees. Loans are also easier to obtain this year for small companies. According to Biz2Credit, a funding consultant for small firms, “big banks approved 21.5% of small-business loan requests in February, a post-recession high.” Small companies are thriving, and look forward to a great year for both profit and employment.