Small Business Hiring Up

CNN Money reports that small businesses have ramped up their hiring in recent months, fueled by a recovering economy and more optimistic business owners. The sector added 100,000 jobs in February, keeping pace with 101,000 in both December and January, according to data compiled by ADP, a payroll processor.

Small businesses defined as firms with fewer than 50 employees, started hiring in January 2010 and have been adding jobs consecutively for the last 12 months, according to ADP.

Of the 217,000 jobs added last month, 46% of them were added by small businesses.

The overwhelming majority of the job growth in the small business sector — 97,000 jobs — were service jobs in the most recent month. Only 3,000 were in the goods producing sector.

Small business still has a long way to go when it comes to job creation. The sector shed 2.7 million jobs between April 2008 and February 2010. It has added only 607,000 jobs between March of 2010 and last month, based on ADP data. ◆