Job Creation in America: How Our Smallest Companies Put the Most People to Work

Abstract

Explores how jobs are created and destroyed in the United States. Data is derived from 12 million business establishments studied since 1969. Results show that the business population as a whole is extremely turbulent, meaning millions of companies form every year, and a significant portion experience growth -- especially small firms. An era of innovation is on the rise, stemming from a small number of high tech and high-innovation firms that are leading the service industries of the United States. The economies of Canada, Sweden, and the United Kingdom are studied as well, and are found to exhibit strikingly different characteristics from the US, based on differing cultural values; consequently, change will evolve slowly. The spatial implications of the innovation revolution are discussed, and predictions are made for future areas of economic growth. Conclusions show that the US worker must be willing to seek opportunities, acquire knowledge that is valuable across industries, and adapt to multiple jobs and the career shifts that necessarily accompany turbulent, innovation-based markets. (CJC)

Keywords: Regional differences, Entrepreneurial environment, Firm growth, Firm turnover, Firm births, Job creation, Cultural values, Labor force, Spatial analysis, Job analysis, Economic transitions, Employment patterns, Cultural differences, Economic growth