Mid-Sized Firms Add 1.2m Jobs Over 12 Months

The Designers Firm

 Mid-sized firms (Photo credit: My name’s axel)

Mid-sized firms are on track to add more than 1.25 million jobs in 2013, which would account for 7 out of every 10 new jobs created this year. In addition, the nearly 200,000 companies representing the U.S. middle market grew revenue at 5.5% over the past 12 months, more than double the rate of S&P 500 companies.

The U.S. middle market, made up of businesses with revenue between $10 million and $1 billion, contributes one-third of non-government U.S. GDP and accounts for 44.5 million jobs, or one-third of total U.S. employment. Between 2007 and 2010, U.S. middle market firms created 2.2 million jobs while large corporations cut more than 3 million jobs. The mid-market continued to outperform in job creation, with more than 2 million new jobs created between 2010 and 2012.

Uncertainty Plaguing Mid-Market Growth – Job Growth Projections Cut by 180,000

While annual growth trends are positive, this quarter’s index revealed a distinct moderation in quarterly gains as well as in employment, revenue, investment and confidence growth projections in the year ahead. The employment outlook over the next 12 months fell by almost 200,000 between Q2 and Q3, with middle market companies expecting to add around 900,000 new jobs. This comes as 47% of companies said that government uncertainty was highly challenging to them, a strong increase over Q2.

The Impact of Continued Uncertainty

Washington’s latest agreement to reopen the government and extend the debt ceiling sets the stage for another potential crisis of confidence early next year. 45% of the executives surveyed indicated a government default would have direct impacts on their businesses with higher interest rates, reduced business and consumer confidence, and reduced confidence in the credit worthiness of the U.S. Some 94% of the middle market executives consider the higher interest rates as the most adverse impact of the U.S. default on debt.

From: Ohio State University Fisher College of Business

** Share the BLM Magazine with your executive colleagues and friends!

Follow the Magazine:

https://businessleadershipmanagement.wordpress.com/subscribe-follow-the-magazine/

(After you have filled in your email address in the column at the right hand side of the screen, a confirmation email will sent to your email address. You will have to confirm it before subscription begins)

Follow us on Twitter:

https://twitter.com/BusinessLeaders

Like us on Facebook:

https://www.facebook.com/BusinessLeadershipManagement

**As part of the Magazine’s drive to reward subscribers/followers, we will be providing subscribers/followers special access to exclusive content which will not be otherwise available to normal visitors. Please be sure to subscribe to the Magazine. Many visitors have given us positive comments that they will be bookmarking the site, but as the system is unable to capture a working email address to which the passcodes for exclusive content will be sent, they will miss out on this content. Do note that passcodes are locked to each exclusive content, not a one-for-all access, so do provide a working email address that you check regularly so as not to miss out on them!

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s