New companies simply aren’t the same job creators that they have been in decades past. According to Labor Department data released yesterday, during the expansion, new establishments have accounted for a little more than 11 percent of all new private-sector jobs created in the U.S.
During the 1990s, the figure was 15 percent. That may seem like a small shift, but those few percentage points add up to nearly 300,000 jobs a quarter.
Looking back to 1992, the only sector where startups are now creating more jobs is education and health care. On the other hand, new manufacturing firms accounted for the creation of 22,000 jobs in the third quarter of 2016, down about 80 percent from 24 years earlier. Natural resources and mining, financial services and information—a sector that lumps together old-world publishing with software and internet services—are all down by about half.