Report: Mid-Market Continues to Create Jobs, Grow Revenue
The National Center for the Middle Market (NCMM) announced that middle-market companies increased headcount by 2.2%, about 950,000 jobs, over the last 12 months, outpacing the overall economy which grew employment by 1.7%. Middle-market firms also grew revenues in the past 12 months at more than three times the rate of S&P 500 firms, growing at 5.5% versus 1.6%.
However, new research from the NCMM, a partnership between The Ohio State University Fisher College of Business and GE Capital, also finds a softening in expectations for middle-market firms. Over the next 12 months, projected employment growth has dropped to 1.3%, and projected revenue growth has fallen to 3.7%. These forecasts are important because the middle market constitutes nearly one-third of the private sector GDP and employment in the U.S.
“Though slowing, the middle market continues to create jobs and grow revenue despite weak confidence in both the national and global economies,” said Dr. Anil Makhija, academic director of the NCMM. “However, 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. This is concerning for the U.S. economy as a whole given the middle market