A new report by Paychex and IHS Markit showed that hospitality and leisure continue to lag behind other small business sectors when it comes to job growth.
"After December's decline, the Small Business Jobs Index remained relatively flat in January," said James Diffley, chief regional economist at IHS Markit.
According to the report, almost all industry sectors showed month-over-month stability. The leisure and hospitality industries were lagging, however.
"Led by a strong showing in construction, most industries experienced gains in January. This helped stabilize employment growth to begin the year," said Martin Mucci, Paychex president and CEO. "The new round of Paycheck Protection Program loans will be especially important to businesses negatively impacted by COVID-19. Especially those in the hospitality sector where the maximum loan amount has been increased."
COVID-19 shutdowns around the U.S. continue to plague these industries, which fell 0.63 percent in January to 86.53 and is now down 10.96 percent year-over-year.
President Joe Biden's $1.9 trillion stimulus proposal, if passed, will offer other programs that will assist the struggling leisure and hospitality industries.
The proposal allocates $15 billion to develop a new grant program for small business owners separate from the existing Paycheck Protection Program.
It also provides a $35 billion investment in some state, local, tribal and non-profit financing programs that offer low-interest loans and provide venture capital to entrepreneurs.
The plan has garnered praise from trade organizations within the travel industry, including from the American Society of Travel Advisors and the U.S. Travel Association.
"We welcome and wholeheartedly support the provisions of President-elect Biden's COVID-19 relief proposal that will help spur the travel industry's recovery and provide support to ASTA members, employees and independent contractors," Eben Peck, ASTA EVP Advocacy, said in a statement. "These include an ambitious national vaccination program, an extension of the CARES Act's unemployment programs through September and targeted grants to small businesses hit hardest by COVID."
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