Thursday, December 18, 2014

Start-up job creation slowed in recession

New Census data shows that job-creation activity was at its lowest levels in 30 years.

Start-up job creation slowed in recession

As the U.S. economy continues to expand, we've been waiting for small business to start creating jobs again.

After all, politicians and economic development experts have drummed up the message that most new jobs come from small business.

New data released by the U.S. Census Bureau indicates that when those start-ups and existing firms do start to hire again, they'll be filling in a deep hole. The recession that ran from December 2007 through June 2009 produced the lowest job-creation rates by start-ups and existing firms in about 30 years.

The Census data tracks the more than 6 million establishments that have paid employees to present a picture of the changes in employment. (No one-man band's in this enterprising pool.)

The Census Bureau said that overall job creation fell by about 4 percentage points between 2006 and 2009. Of course, job destruction usually rises during recessions, and that tends to be the main factor on changes in net employment.

However, the lower level of job creation had a bigger impact than job destruction in the most recent recession than in previous ones, the analysis shows.

Read what the Census Bureau found here.

And here's a link to an interpretation of those numbers by the Ewing Marion Kauffman Foundation, which focuses on all things small business.

Mike Armstrong Inquirer Columnist
About this blog
Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980. Reach Mike at marmstrong@phillynews.com.

Mike Armstrong Inquirer Columnist
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