- Global Competitiveness
Nearly One Million Jobs Added To Middle Market Workforce: ReportOctober 23, 2012
The National Center for the Middle Market's latest findings also reveal a softening of expectations for middle market firms.
In the last 12 months middle market companies have added around 950,000 jobs, or increased their headcount by 2.2 percent, according to the National Center for the Middle Market, which released new findings Wednesday.
Revenues for middle market firms were also up in the past 12 months, at a rate more than three times that of S&P 500 firms, growing at 5.5 percent versus 1.6 percent, according to the findings.
But forecasts for the coming 12 months aren’t as rosy. The research from the NCMM at Fisher School of Business at the Ohio State University projects falls in employment and revenue growth during that period.
The NCMM says there’s been a clear pattern of decline over the past three quarters of this year in revenue growth. For the past 12 months, it says average revenue growth fell from 6.9 percent in the first quarter to 6.1 in the second, and now 5.5 for Q3.
“…this quarter’s indicator shows that serious challenges for middle market companies are taking their toll, imposing lower expectations for employment and revenue growth in the year ahead,” said Dr Anil Makhija, NCMM’s academic director.
The Middle Market Indicator, a quarterly survey of 1,000 middle market executives, is published by NCMM and is a partnership between the Ohio State University Fisher College of Business and GE Capital. It analyzes capabilities, performance, growth drivers and overall economic outlook in its survey of middle market businesses.
Among the highlights: the finding that over 70 percent of executives surveyed said they were not confident or somewhat not confident about global economic prospects, only slightly better than 78 percent in the previous quarter.
One of the biggest concerns lay with uncertainty over healthcare costs with regulations still in flux, echoing a recent report from the National Federation of Independent Business showing cooling confidence because of the possible changes coming out of the upcoming elections.