The presence of the oxide coatings on conducting metal particles is often ignored in the calculations of microwave absorption. However, we find that the optical properties of the coatings play a significant role in enhancing or suppressing the absorption of electromagnetic energy. Here, we solve the Mie scattering equations numerically to separate and quantify the role of electric and magnetic field absorption from microwaves at 2.45 GHz by small metal spheres coated with dielectric or semi-conducting materials. The range of size and conductivities of the metal particles and the optical properties of the coatings are chosen for their practical importance. We also provide simple approximate expressions for the absorption per unit volume by coated spheres in the small particle limit which agrees very well with the exact Mie solution. We have demonstrated that for highly conducting particles coated with a material of low conductivity, the electric field absorption depends only on the optical properties, and the volume fraction of the coating. In contrast, the magnetic field absorption depends only on the properties of the core which is the same as the bare metal. We find that the power absorbed by coated particles via the electric field is maximized when loss tangent, tanδ~1. A key result of this study is that a thin layer of lossy coating (~15% of the particle size) on highly conductive particles will significantly enhance (up to a factor of 105) both the power absorbed from the E-field and the total power absorbed.