Who Are the Job Creators?
One of my pet beefs is the frequently heard CFIB claim that small businesses are the job creators, not large enterprises.
What is small and what is big? It all depends on whether you look at the size of the workplace, or the number of employees of a company at all locations. Wal Mart may be modest in size by the former definition, but is huge by the latter.
The Table shows data from the Labour Force for the private sector only. Very small businesses with under 20 employees account for 39.0% of workers at the workplace level, but just 24.5% at the all locations level. Very big businesses with more than 500 workers account for just 7.8% of employees at the workplace level, but 41.6% at all locations.
As further shown, the distribution at the all locations level was pretty stable 2007 to 2010. Employment with companies of over 100 employees and over 500 combined was unchanged at 56.5% (despite, one could add, those corporate tax cuts which applied to large but not very small companies.)
And let me not even get started on the job quality dimension of large versus small.
(Thanks to Sylvain for crunching the numbers.)
|Distribution of Private Sector Employees in 2010|
|Source: Labour Force Survey|