Small businesses—firms with fewer than 249 employees—accounted for 99 percent of the 5.6 million firms covered under Unemployment Insurance in the first quarter of 2023. Small Business Week, April 28–May 4, celebrates these businesses contributions to the economy. Over the last ten years, those small businesses have employed an average of 46 percent of the covered workforce. However, over the same period, small businesses contributed 55 percent of the net total number of jobs created.

At the onset of the COVID-19 pandemic in the first two quarters of 2020, small businesses suffered greater net job losses than large establishments. Small businesses lost 8.0 million jobs during this period, while 7.8 million jobs were lost in larger firms.

Later in 2020, firms with 250 or more employees had a net job gain of 3.0 million, slightly more 2.9 million jobs added by small businesses. Since the first quarter of 2021, small businesses have accounted for 53 percent of 12.2 million total net job creation across all firm sizes.

These data are from the Business Employment Dynamics program. Quarterly data are seasonally adjusted. For more data like these, see National Business Employment Dynamics Data by Firm Size Class.

Article courtesy of the US Bureau of Labor Statistics.