The S&P 500 consists of 500 of the largest publicly-traded US corporations.
It includes extremely valuable companies like Exxon Mobil and Apple. Many of these names are massive employers like Wal-Mart, which has around 2.2 million people on its payroll.
Many folks consider the S&P 500 to be a decent bellwether of the economy.
But in the context of the US labour market, the S&P 500 is small.
This pie chart comes to us from Deutsche Bank’s Torsten Slok. According to Slok’s data, the total payrolls of S&P 500 companies would represent just roughly 15% of US nonfarm payrolls, which currently stands at around 140 million.
“Small and medium-sized companies play a very important role in the US economy,” Slok says.
This is good perspective as these smaller companies tend to be more aggressive in their hiring.