A recent Analysis of U.S. Census Bureau data shows that newly created and young companies are the primary drivers of job creation in the United States. This report shows that most net job creation is generated by firms that are one to five years old. These firms create more net new jobs than their older counterparts, as well as a higher average number of jobs per firm.
More: New Business, Not Small Business, Is What Creates Jobs - WSJ
While the largest share of employement remained in the oldest and largest companies, young companies are most dynamic in adding new jobs to the economy.
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Age of Firm in Years |
Young Firms don't just mean small firm size. The Firms responsible for net job creation are not only young but also small- and medium-sized.
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Firm Size (Employees) |
In particular, we have recently seen strong job creation in retail, health care, accommodation and food services, and professional, scientific, and technical services, while sectors such as educational services and information appear to have lagged.
