During the first six months of 2002, the pace of hiring by small businesses was more than double that of large companies, CIBC World Markets said today.

In fact, in the last 12 months, small business generated 40% of all new jobs in the Canadian economy, according to a study released by Benjamin Tal, senior economist of CIBC World Markets.

The study showed that employment in firms with less than 20 employees jumped 2.8% compared with the first six months of last year, while employment in companies with more than 500 employees only rose 1.2%.

“Downsizing in large firms has given small business owners a golden opportunity to tap into a new pool of workers,” says Tal. “And small business owners are capitalizing on it, especially in the case of highly skilled workers.”

The number of professional employees working in small businesses rose by 9% in the first six months of 2002 – three times the rate of growth in total small business hiring.

“Small business tends to be the first to experience the effect of an economic downturn, and the first to respond positively to a pick-up in economic recovery. Therefore, the fact that small business activity is accelerating is good news for all of us,” says Rob Paterson, a senior vice-president in CIBC’s small business group.