Mid-sized firms are on track to add more than 1.25 million jobs in 2013, which would account for 7 out of every 10 new jobs created this year. In addition, the nearly 200,000 companies representing the U.S. middle market grew revenue at 5.5% over the past 12 months, more than double the rate of S&P 500 companies, according to the National Center for the Middle Market’s (NCMM) latest quarterly Middle Market Indicator (MMI). The report is being released today at the third annual National Middle Market Summit at The Ohio State University.
The U.S. middle market, made up of businesses with revenue between $10 million and $1 billion, contributes one-third of non-government U.S. GDP and accounts for 44.5 million jobs, or one-third of total U.S. employment. Between 2007 and 2010, U.S. middle market firms created 2.2 million jobs while large corporations cut more than 3 million jobs. The mid-market continued to outperform in job creation, with more than 2 million new jobs created between 2010 and 2012.
“Middle market companies defy even their own expectations on performance. This is a dynamic group of companies that continue to lead the U.S. economic recovery, but whose growth is stalling in light of the recent government uncertainty,” said Dr. Anil Makhija, Academic Director at NCMM, a partnership of GE Capital and The Ohio State University Fisher College of Business.
Uncertainty Plaguing Mid-Market Growth – Job Growth Projections Cut by 180,000While annual growth trends are positive, this quarter’s MMI revealed a distinct moderation in quarterly gains as well as in employment, revenue, investment and confidence growth projections in the year ahead. The employment outlook over the next 12 months fell by almost 200,000 between Q2 and Q3, with middle market companies expecting to add around 900,000 new jobs. This comes as 47% of companies said that government uncertainty was highly challenging to them, a strong increase over Q2.