Sharon Miller, who serves as the President and Co-Head of Business Banking at Bank of America, recently discussed the challenges small businesses are facing amidst economic uncertainties and shared some optimism for 2026 during an appearance on “Claman Countdown.”
According to the latest report from ADP, over 100,000 jobs were lost in November as private companies made significant cuts, totaling 32,000 jobs. Most of these losses came from small and medium-sized enterprises, which accounted for around 120,000 job losses. Interestingly, medium-sized businesses, those with 50 to 499 employees, actually added 51,000 jobs, and large businesses contributed an additional 39,000 jobs, somewhat softening the overall decline for the month.
Nella Richardson, ADP’s chief economist, pointed out that the job market has been unpredictable lately as companies try to manage both cautious consumer behaviors and a shaky macroeconomic landscape. While data showing economic growth remains robust, particularly due to advancements related to AI, small businesses are grappling with ongoing labor market shifts and persistent inflation. Unlike larger corporations, small businesses tend to be more vulnerable to economic fluctuations and changes in policies, like rising tariffs.
Sean Higgins, a research fellow at the Institute for Competitive Enterprise, commented that the current situation is concerning for small and medium businesses, which are feeling the strain amid various economic uncertainties including tariffs. He suggested that fluctuating interest rates, which are fluctuating almost by the penny, further complicate matters for businesses trying to make pricing decisions over the next several months.
ADP’s statistics also illustrated a decline across both goods-producing and service-providing sectors. The services sector saw professional and business services losing 26,000 jobs, and information services shedding another 20,000. In contrast, education and health care managed to gain 33,000 jobs during the same period.
Within the goods-producing industries, natural resources and mining added 8,000 jobs, while manufacturing saw a 18,000 job loss, and construction experienced a loss of 9,000 jobs. Manufacturers, facing increased costs for intermediary products, are struggling due to tariffs imposed on imports.
Interestingly, Higgins highlighted that tariffs are often predicated on finished goods, but this doesn’t fully encompass the reality. Many manufacturers are reliant on imported raw materials for their products, complicating the implications of such tariffs. For example, with the steel tariffs introduced by President Trump, jobs in steel production may have increased, but at the cost of jobs in other manufacturing sectors dependent on those imports.
Peter Hansen, who is the director of research and policy analysis at the National Federation of Independent Business (NFIB), remarked that, despite ADP’s findings suggesting a cooling labor market, there is still a silver lining. Small businesses, he mentioned, are eager to hire but often can’t find the right candidates. Uncertainty plagues small businesses particularly during pivotal moments, such as during recent tariff announcements.
Hansen concluded that it’s not just a typical business landscape—there’s a palpable anxiety among consumers that might be affecting sales and investment decisions.
