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Jobs Created from Business Startups in the United States
Jobs Created from Business Startups in the United States
Abstract
One novel feature of the BDS is that business startups (new firms) can be tracked on a comprehensive basis for U.S. private, non-agricultural businesses. The fraction of employment accounted for by U.S. private-sector business startups over the 1980-2005 period is about 3 percent per year. This measure is interpretable as the employment-weighted business startup rate for the United States. While this is a small fraction of overall employment, all of this employment from startups reflects new jobs. As such, 3 percent is large compared to the average annual net employment growth of the U.S. private sector for the same period (about 1.8 percent). This pattern implies that, excluding the jobs from new firms, the U.S. net employment growth rate is negative on average. This simple comparison highlights the importance of business startups to job creation in the United States.
Page Last Revised - October 8, 2021
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