Small businesses protect employees

If the U.S. Department of Treasury got a penny every time a politician uttered the words “small business,” we would be well on the way out of our $15 trillion debt.

Most will agree small businesses are important drivers of the economy and create a majority of new U.S. jobs. But a report by American Express OPEN, the small business services arm of American Express, shows firms with less than 100 employees are also good at keeping steady employment levels.

The study compared net hiring, or the difference between jobs added and shed, to U.S. gross domestic product and business optimism to show how macroeconomic factors affect small business hiring. The data show that even with large negative swings in GDP and optimism, net hiring remained consistent.

Asked about future hiring plans, the surveyed businesses reported positive net hiring for the next six months for the eighth consecutive year. Even with political turmoil creating regulatory and tax uncertainty in 2012, 60% of the businesses included in the research plan to hold employment steady and only 9% plan to perform layoffs. Thirty one percent plan to increase hiring, showing promise for a healthier unemployment rate in 2012.