Multi-Dimensional Private Jobs

Summary of Study
Bottom line: The Multi-Dimensional Private Jobs indicators series captures data related to the quantity and quality of new private-sector jobs. The data demonstrates a noticeable drop in American entrepreneurship over the last decade. 

The share of American private-sector jobs held by firms that are 0-1 year old was 3.8% in 2016. The number of jobs held by new firms has not recovered after the Great Recession, falling from 5%, or around 30% higher, in the mid-2000s. This fall in the share of jobs held by new companies indicates a less entrepreneurial society. 

The share of jobs held by new companies varies significantly by state. It is significantly higher in the West, with Idaho, Nevada, Montana, Wyoming, Utah, and California all above 6%, suggesting that Western states are more entrepreneurial. Connecticut, Delaware, Iowa, Wisconsin, and Minnesota all have rates below 4%. 

Relative earnings of a typical private-sector job in firms aged 0-1 years was 64% in 2017, revealing that compensation at new firms is just two-thirds that of established ones. New firm compensation also hasn't recovered from the Great Recession, falling from over 70% before the Great Recession, nearly a 10% drop. States with the highest compensation at new firms include Massachusetts, Connecticut, Tennessee, and Washington D.C.

The number of net new jobs created per 1,000 people in firms 0-1 years was 5.8 new jobs per new firm in 2017. This indicator has also not recovered from the average before the Great Recession of around 7 new jobs per firm. Wyoming and Utah had the most jobs created per new firm, each scoring over 12. Appalachian states had the lowest job creation by new firms. 

The share of private-sector jobs held in firms aged 0-1 years that last more than three quarters as 0.54% in 2016. This measure has held relatively steady over the last decade and among the 50 U.S. states.

Read the full study HERE
Feature Charticle


The Share of Private Sector Jobs Held in Firms Aged 0-1 Years

Kauffman Foundation

Findings:

  • The share of American private-sector jobs held by firms that are 0-1 year old was 3.8% in 2016. 
  • The number of jobs held by new firms has not recovered after the Great Recession, falling from 5%, or around 30% higher, in the mid-2000s.
  • This fall in the share of jobs held by new companies -- combined with the information gleaned from other data -- indicates a less entrepreneurial society. 

Read the full study HERE