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Starting Smaller, Staying Smaller: America’s Slow Leak in Job Creation

March 12, 2012 1 minute Read by Four Percent

E.J. Reedy and Robert E. Litan, Ewing Marion Kauffman Foundation

Although understandable in light of its traumatic impact, the Great Recession of 2007-2009 may be distracting attention from a more fundamental troubling economic trend. The United States appears to be suffering from a long-term leak in job creation that pre-dates the recession and has the potential to persist for an unknown time. The heart of the problem is a pullback by newly created businesses, the economy’s most critical source of job creation, which are generating substantially fewer jobs than one would expect based on past experience. Read More