Small business hiring helps offset losses from government, big corporations

3/4/2011

While small businesses were the most affected by the economic recession, it seems they are the key to digging the United States out of it. As MarketWatch recently observed, small business hiring practices are helping to offset layoffs from government agencies and big corporations.

Large companies, for example, have been in a holding pattern, adding only 10,000 new employees to the workforce over the past three months. Even though big corporations account for 16 percent of jobs in the private sector, they are contributing to less than 5 percent of payroll increases.

Jonathan Basile, director of economics at Credit Suisse, told the source that small businesses will be the biggest factor in the recovery of the economy.

"The lackluster performance of the small business sector was the missing piece to the jobs recovery until this recent awakening," Basile explained.

With greater access to commercial loans, small businesses have more resources at their disposal. This is helping to create a larger workforce, new equipment, more offices and other commodities that are vital to success.