Small Businesses HAVE NO SHOT! (Jobs Report Disaster!)

Hey, everyone, it's Mike Andes. And today you're gonna get the salty version of Mike Andes. And I'm gonna go on a bit of a rant because the jobs report just came out this morning and I think it's absolutely atrocious. It's extremely bad for small businesses and in my mind, probably one of the worst days in my experience since 2020 for small business owners. I'm gonna show you some of these numbers and I am appalled, mostly due to the fact that this is being shown and presented in the media as some really great positive thing when this is probably one of the most cataclysmic things that could ever happen to small businesses and in my opinion, the economy of the United States. So let me go ahead and show you some numbers. I'm going to hop over here into first off, the Jolts, which is the Job Openings and Labor Turnover Survey. And right now, if you look on CNN or whatever it is, you're going to see all these positive headlines and these charts around new employees. A bunch of employees are added. A bunch of jobs are added. And you can see here that senior economist, economist said the hiring hires and layoffs rates held steady in March as quits edged up slightly. Workers continue to quit and get hired at fast rates in today's economy. This churn is a positive sign of a strengthening labor market where laborers can workers can quit, search and obtain new opportunities. I would agree with this 100% of the time outside of some other data that is not being talked about. Again, while there was little change overall in the latest jolts data released this morning from the Bureau of Labor Statistics, job openings and quits end up slightly for March. Hiring remains strong and hire still significantly outpace quits. The great reshuffling continues in March as hiring outpaces quits in every major sector. Churn, quits and fires continues to be highest in low wage sectors such as accommodation and food services. All of this is very good. All of this is very good. Today's job openings reports confirmed that we already what we already knew about the recovery. The labor market continues to experience a historically fast bounce back from the pandemic recession because policy makers sought solutions at the scale of the problem. This is an article from cnn. The economy is recovering fast. Like this is such headline garbage. And then of course, this is all you can use as a PR stunt. President came out and basically said, hey, look, we add most jobs ever. Past year it's been 6.6 new million. 6.6 million new jobs added. That's Fantastic. That's great. I agree with all of that. But I want you to see behind the hood and behind what's actually happening here because let's open up this morning's report from adp. So ADP Research Institute put these numbers out. In a few days the government's gonna put their numbers out. But this ADP is great report. I love this report. I've tracked this very carefully. I was up at 5:15am this morning to get this report when it came out live. And this is what's being heralded as the headline. 247,000 new jobs. Let's go the month of March to April. All right.

That'S great. But let's go ahead and look under the hood because when you look at the size of the business, we had 321,000 new jobs added to large companies that had 500 or more employees. We have 46,000 jobs added to midsize and cross companies that have 50 to 500 employees. But look at what is happening here. Small businesses are getting crushed right now. Absolutely obliterated. These numbers are literally going to go take you back to March 2020. Small businesses are getting crushed right now because what is happening is these massive companies are able to afford the labor, the increase in labor cost and small business cannot stay up. And I do not believe that is fair. And I think there needs to be changes. And it just makes me so mad because what's being heralded right now is we have 202,000 new jobs in the service providing sector. 46,000 new jobs and a good producing sector. Everything is up, up and to the left. Okay, great. Let's actually look at the numbers though. Let's break down the small business report again. Negative. 120,000 jobs. So we lost 120,000 jobs for small businesses. Now look at this. This is the part that just freaks me out. Very small companies have less than 20 employees. 96,000, like 75% of these lost jobs are coming from small, small businesses that have less than 20 employees.

This is just crazy. Every single sector down service providing sector, 103,000. I think 90% of the jobs coming from very small service based businesses. That's where the jobs are being lost. And guess where they're going. They're going to the Amazons, the Apples, the Walmarts and these massive companies. And for the people in the comments, they're going to say this is just, this is good for the employees. This is good for, you know, people are making more money. This is what has to happen. You just need to pay people more money. That's fine and good, but let me show you what's happening. This is what's happening. Amazon, if you look at their profits and you look at their income statements just reported last week and they lost $3.84 billion. $3.84 billion.

They lost. And this is the crazy thing is small businesses can't compete with a company that can lose $3.84 billion in one quarter, make $116 billion in revenue and suck up all of the hires. This is where the new hires are coming. This is where the new jobs are being created is these massive conglomerates. Don't believe me. Check this out. All right, Check this out right here. This is Amazon worldwide employment certainly does not look like anything that small business has seen over the past two years. We still haven't covered recovered from the small in the small business sector from COVID 2020, like March 2020, we have still not recovered. And this is where the jobs are going to these massive companies that are not like profitable. They're just being, they're just being propped up by a Wall street and investors that are pouring money into them and they can take massive losses, $3.84 billion in losses in one quarter, but they can handle this. Look at these numbers. Like these are atrocious numbers. When you look at like Net profit margin negative 3.1 minus 3.3%. Like any small business owner that for one quarter would have a negative 3.3% profit margin, it would probably put them out of business. And that is what's happening. Because we can't afford to pay labor 40, 50% more than we did just six months ago or a year ago. We can't afford it. And people are like, oh, just pay them more and raise your prices. No, we can't. Because companies like Amazon and these massive conglomerates that have such pricing power, they can lose money. They can lose billions of dollars and still grow higher and suck up all the talent because they're being judged on their top line revenue. And if that number's not growing, their stock price will go down.

So I'm pretty frustrated. Over the past couple weeks across Augusta Nation, we have over 90 locations and there's been dozens and dozens of just employees leaving. And I know they're getting better jobs. I'm happy that they're making more money. That's fantastic. I'm happy about that. But when is it going to be when the lawmakers stop ringing their own bell and patting themselves on the back while Making all these jobs and they're killing small business. We are going to the economy, that of Europe. And that is either you are working by yourself as a solopreneur, by yourself, a trades person, or you have, you work for a massive company and there's not much in between. If you go to Europe and other markets like Australia, there's not much in between. There's not small businesses. And I'm freaked out by the fact that the majority of jobs in America are provided by small businesses, people with less than 50 employees. And here we have it just very clear to us that these massive companies that are just trying to appease Wall street and can lose billions of dollars for years on end, they're the ones that are getting all these new jobs because they're just able to just hand that money, that loss down to the shareholders. Small business owners can't. Small business owners have a couple thousand dollars in the bank account. They can't. They're struggling to make payroll next week. They cannot afford 20 in wages. And that's what's happening right now. And I just think it's appalling. The same people that go and scream against the likes of Amazon and these massive companies and say they should become smaller and all the rest of it are the same ones that today will be saying how great their policies are and how incredible everything's been the past year and we've made all these jobs and those jobs are going to those large companies that they so hate and despise and talk negatively against the polling. It's bad day for small business owners in America. And if you talk to any service based business that has between two or three employees, up to 10, 15, 20 employees, they are struggling right now to keep employees. There's a massive churn. And the churn that is being heralded as a very positive thing, which I agree for the employee, in the short term it is positive. But if we lose the backbone of our country, which is small business, this economy is toast. I've talked about recession coming up in the next 12 to 24 months. It will happen. If you wipe out the small businesses in America and you only rely on these massive companies that are losing money, that are willing to take massive losses, it just, it's indicative of what our country's doing. Massive amounts of debt. We're $30 trillion in debt. Like it's just indicative of what's happened at the top is literally coming down to business now where you have companies losing money, sucking out all of the profits from these industries and the small businesses are failing and we're going to lead exactly what happened in Europe. And that's going to be you either work by yourself doing your trade, or you work for a massive company that has thousands of employees. Boys. And there's the small business in between cannot compete. And for that, I am extremely, extremely annoyed. So, anyways.