Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thanks, Brandy. Appreciate it.
Brandy Auterson-Hurst:
So we’ve been hearing that small businesses are having a tougher time in today’s economy. What’s the data show?
David Nelson:
Well, there’s a lot of weakness, actually. What we’re seeing as far as in that space certainly is not what we want to see. The chart I brought along today is going to give you a visual as far as that. The blue line is looking at companies with 500 employees or greater. The red line is looking at small businesses, and we’re defining that, these are the ultra-small businesses. So one person to 20 people.
What we see as far as in the blue line, to the right, is that it’s actually been increasing. We see 150,000 job increase there. Whereas when we look at the red line, what we see is 47,000 jobs being lost. What’s interesting about this, that it’s really important in the context as far as what we’re talking about, is small businesses are over 50% of all employees as far as the United States.
So this is a really concerning type piece to look at. Basically, oftentimes this is leading into something more severe, and certainly that’s not what we want to see as far as in the foreseeable future.
Brandy Auterson-Hurst:
Okay. So what does this mean for the overall economy?
David Nelson:
Well, hopefully the data improves sooner versus later, because a weak labor market almost always is a surefire way as far as to a recession. And none of us want to see a recession as far as take place. Typically, what happens then is you see more people getting kicked out of a job, you see interest rates back off a little bit, but not that dramatically. So we’ll keep a close eye on this and we’ll keep people current as far as what’s taking place.
Brandy Auterson-Hurst:
All right. As always, thanks for joining us, David.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
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Past performance is no guarantee of future results. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.
Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.