Kauffman Foundation News (3/23/11): Kauffman Releases Report Highlighting How Businesses Coped During the Recession
Job Creation in the U.S. Hits 29-Year Low at Peak of Great Recession, According to New Census Bureau Data
Kauffman-funded study shows new and expanding firms still created millions of jobs despite economy
In 2009, at the height of the Great Recession, the economy saw historically large declines in job creation rates from startup and existing firms–the lowest rates in nearly 30 years–while job losses also increased. From 2006 to 2009, the overall job creation rate fell 4 points (from 16.5 percent), and among startups the job creation rate fell by 1 point (from 3 percent). However, compared to 2006 rates this represents a 25 percent decrease in overall job creation and a 34 percent decline among startups. Despite this grim reality, new and expanding firms still created more than 14 million new jobs.
These facts and more were released today in a brief on the latest update to the Census Bureau’s Business Dynamics Statistics, which is partially funded by the Ewing Marion Kauffman Foundation to provide annual business data on U.S. firms and establishments with paid employees from 1976 to 2009.
