Many people in New Jersey and around the country realize that the economy has been unsteady for the last several years. Just when the national economy began to turn around, New Jersey was hit with Hurricane Sandy which devastated many small businesses along the New Jersey shore. With all this negative news, people may assume that this is not a good time to invest in business formation. However, despite these setbacks new data shows that small businesses in New Jersey are growing.
According to the new data, 15,000 small business jobs were created in the month of February in the United States. These businesses are those that have fewer than 20 employees. This was an increase of .07 percent compared with the previous month. In New Jersey specifically, the number of new small business jobs grew by .04 percent. While this number was lower than the national average, it was higher than neighboring New York and Pennsylvania. Each of those states lost small business jobs last month.
With the help of these increases, small business numbers in New Jersey are starting to reach pre-recession levels. Over the last year, 75,000 jobs have been created in the small business sector across the nation. While this growth is smaller than some would like to see, it is a step in the right direction. Furthermore, while the number of small business jobs continues to increase, so does the employees’ pay. In February, pay for small business employees’ pay increased .4 percent, while the number of hours worked increased .7 percent.
Whether to hire new employees is just one question that those looking to form a business in New Jersey must ask. By carefully considering business formation issues, like employee issues, from the beginning of a business venture, owners can save themselves time, money and hassle down the line.
Source: NJBIZ, “Report: NJ small business job growth slow, but encouraging,” Mary Ann Bourbeau, March 4, 2013