Fewer Startup Jobs Created In Recent Decades
KRISTIN MCCUE AND JAMES LAWRENCE - JANUARY 16, 2018
The number of business startups has risen in recent years, but remains well below pre-Great Recession levels.
In 2015, 414,000 startup firms created 2.5 million new jobs, according to data from the Census Bureau’s Business Dynamics Statistics (BDS). The average in the 2002-2006 period was 524,000 startup firms and 3.3 million new jobs per year. The peak was in 2006, when 558,000 startup firms created 3.4 million jobs.
The recession undoubtedly contributed to the sharp decline in startup activity from 2006 to 2009, but BDS statistics from the past few decades show a downward trend in the share of jobs created by startups even before the recession. For more information, see Haltiwanger, Jarmin, Miranda (2011).