The nation’s 414,000 startup firms created 2.5 million new jobs in 2015, according to data…
The nation’s 414,000 startup firms created 2.5 million new jobs in 2015, according to data from the US Census Bureau.
In contrast, this level of startup activity is well below the pre-Great Recession average of 524,000 startup firms and 3.3 million new jobs per year for the period 2002-2006.
Job creation in the United States totaled 16.8 million with job destruction equaling 13.7 million. Job creation minus job destruction equaled net job creation of 3.1 million in 2015.
Young firms (those less than 6 years old) accounted for 11 percent of employment and 27 percent of job creation.
Old firms (those more than 25 years old) comprised 62 percent of employment and 48 percent of job creation.
The job creation rate for young firms, excluding startups, was 20 percent in 2015. This rate is above the Great Recession low of 15 percent in 2009, and it has recovered to its average level of 20 percent during the period 2002-2006.
The net job creation rate for establishments in metro areas was 2.7 percent. For establishments in nonmetro areas, the rate was lower at 1.2 percent.
States with the highest net job creation rates in 2015 — 3.4 percent and above — are in the South Atlantic, Pacific and Mountain divisions. There were significant differences in net job creation rates at the state level, ranging from about 5 percent to just below 0 percent.