Bloomberg News has highlighted the research of Professor John Haltiwanger on the declining pace of startups and the accompanying declining share of employment held by new firms. The continued slow growth in productivity of the U.S. economy may be affected by a lack of new ventures and the role such new ventures play in innovation and productivity growth.
The number of employees at companies that have been around for less than five years slumped to a record-low 9.1 percent of the workforce in 2013, the latest data available, or about half the share during the peak in 1987, according to research by John Haltiwanger, an economist with the University of Maryland and NBER. While newer figures aren’t available, ”other indicators suggest startups have still not recovered by 2015,” he said.
Read the full article online here.