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Study: 93% of U.S. cities report business declines

Ninety-three percent of the nation's urban markets suffered declines in business activity after the onset of the recession.
A new analysis by On Numbers indicates that 870 metropolitan and micropolitan areas had fewer private-sector businesses in 2009 than in 2008. The recession officially began in December 2007.
Just 61 metros and micros added businesses in 2009. The other seven areas were unchanged.
The pattern was even more pronounced among the 100 biggest markets. Ninety-seven major metros lost businesses in 2009. The only gainers were three Texas markets — Austin, McAllen-Edinburg and Houston.
On Numbers compared county-level business data from the U.S. Census Bureau for 2008 and 2009. The latter are the latest official figures available.
A database with business counts for all 938 markets can be accessed at http://tinyurl.com/on-numbers. Charts accompanying the stories below can also be found at that address.
5% of private-sector jobs disappeared
Private-sector employment plummeted 5.2 percent during the first two years of the economic slowdown.
The nation's 938 metros and micros had 107.45 million private-sector jobs as of 2009, down from 113.40 million in 2008.
Only 80 markets expanded their private-sector job bases between 2008 and 2009. The other 858 metros and micros - 91 percent of the study group - lost jobs.
Two tiny micropolitan areas posted double-digit private-sector employment gains: 15.7 percent in Hinesville-Fort Stewart, Ga., and 11.1 percent in Kennett, Mo. But the figures for major markets were considerably more subdued. Only one of the nation's 100 biggest metros registered a private-sector job increase: 0.3 percent in Springfield, Mass.
Seven major metros suffered year-to-year employment declines of more than 8 percent. The worst cases were Las Vegas, which lost 9.4 percent of its private-sector jobs between 2008 and 2009, and Greenville, S.C., which lost 9.0 percent.
Pay dropped 0.2% after downturn
Pay cuts were more common than raises after the recession arrived.
The typical private-sector worker earned $43,000 in 2009. That was down 0.2 percent from 2008's average of $43,100.
The New York City area, which sprawls across portions of New York, New Jersey and Pennsylvania, suffered the worst decline of any major market.
The average salary for its private-sector workers dropped 4.7 percent from $63,300 in 2008 to $60,300 in 2009.
Next were Wichita, Kan. (down 4.1 percent), Youngstown, Ohio (also down 4.1 percent), and Minneapolis-St. Paul (down 3.7 percent).
Palm Bay-Melbourne, Fla., was the biggest exception to the rule. Its average pay per private-sector employee increased by 5.5 percent between 2008 and 2009, though the upswing came with a price. The number of private-sector jobs in Palm Bay-Melbourne declined by 13,770 during the same period.
Small businesses dwindle in 97 big markets
Margins are extremely tight for most small businesses, which is why the recession has hit them especially hard.
On Numbers defines a small business as any private-sector establishment with fewer than 100 employees. Their limited size can make it difficult to maneuver when times get tough. Substantial layoffs, for example, are rarely an option.
There were 6.96 million small businesses in the nation's 938 metropolitan and micropolitan areas as of 2008, the first full year of the recession. That figure dropped 2 percent to 6.82 million in 2009.
This downward trend was widespread. Ninety-seven of the nation's 100 biggest markets lost small businesses between 2008 and 2009. The worst net declines were registered in Boise, Idaho (down 5 percent), Cape Coral-Fort Myers, Fla. (down 4.2 percent), and Phoenix (down 3.8 percent).
The sole exceptions occurred in Texas, as often seem to be the case these days. Austin, McAllen-Edinburg and Houston were the only major markets to add small businesses.
Number of microbusinesses shrinks by 1.6%
Most small businesses are very, very small.
More than 5.1 million private-sector establishments have fewer than 10 employees, fitting On Numbers' definition of a microbusiness.
These tiny shops, offices and industrial plants account for three-quarters of all small businesses across America.
The recession has been a difficult period for microbusinesses, reducing their ranks by 1.6 percent between 2008 and 2009. Eighty-four percent of the nation's 938 metros and micros suffered declines in microbusiness activity during that span.
Boise was hit the hardest among the 100 major markets. Its roster of microbusinesses shrank from 13,223 in 2008 to 12,674 in 2009, a drop of 4.2 percent. Next were two New England metros, Providence and Springfield, Mass., both down 3.8 percent.


