Businesses with fewer than 1,000 employees made up 92% of May hires
Nearly 93% of hires for privately held companies in May came from US business establishments with fewer than 1,000 employees. Companies with 10 to 49 employees accounted for the largest share of the month's hiring.
Data from the Bureau of Labor Statistics reveals that nearly 93% of hires for privately held companies in May were made by US business establishments with fewer than 1,000 employees. Companies employing between 10 and 49 individuals represented the largest portion of these hires, followed by those with 50 to 249 employees.
An analysis of federal data indicates that companies with 5,000 or more employees have historically accounted for only 1% to 2% of hires over the past two decades. In May, these large corporations posted approximately 3% of job openings but completed fewer than 2% of hires. In contrast, businesses with workforces ranging from 50 to 999 employees were responsible for about 39% of job openings and around 43% of the hires made.
Several major corporations have recently announced significant layoffs, potentially due to AI automation or a correction after pandemic-era overhiring. Companies such as Meta and Oracle have undertaken substantial workforce reductions. Concurrently, advancements in artificial intelligence are lowering barriers for entrepreneurship, potentially increasing pressure on smaller businesses to fill open positions.
Surveys suggest that small and medium-sized companies are planning for growth, although some are reportedly engaging in "ghost downsizing," a practice of not filling vacated roles and redistributing tasks. Job seekers seeking new career prospects may find more opportunities by focusing on smaller organizations where hiring activity is currently concentrated.