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

  • E. J. Reedy
  • Robert J. Strom
Part of the Contributions to Economics book series (CE)


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 2007–2009 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.

In other recent research, the Ewing Marion Kauffman Foundation pointed to downward trends in job creation economy wide (see Haltiwanger J, Jarmin R, Miranda J (2011) Historically large decline in job creation from startup and existing firms in the 2008–2009 recession. Kauffman Foundation). In this report, part of the Kauffman Foundation Research Series on Firm Formation and Economic Growth, we flesh out these findings by examining job creation in young businesses over an extended period.


Entrepreneurial Activity Employment Growth Great Recession Firm Formation Aggregate Employment 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.The Ewing Marian Kauffman FoundationKansasUSA

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