Where are the job creators?
Startups are not creating jobs like they used to. According to the Bureau of Labor Statistics, firms less than one year old employed just over 3 million people in 2015, slightly more than they employed a year earlier but a far cry from the roughly 4.7 million people startups employed in 2000. This is despite the fact that the pace of startup activity, which slowed considerably during and after the financial crisis, is now back at 2000 levels. Simply put, these firms are taking on fewer workers. In 2015, they employed an average of 4.5 workers, compared to 6.9 in 2015. On the bright side, 2015 was the first year since 2008 that employment at firms less than a year old topped 3 million.