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Why It Matters That New Businesses Are Creating Jobs More Slowly Than a Decade Ago

Wall Street Journal (11/19/15) Eric Morath

Newly formed businesses are adding jobs at a much slower pace than they were a decade ago, a factor that is restricting employment gains. The number of jobs created by new businesses fell 7% in the first quarter from the fourth quarter of 2014 on a seasonally adjusted basis, according to the U.S. Department of Labor. This figure is down 18% from 10 years ago. Concurrently, the number of job losses due to business closures is down 21% from 2005. Both numbers reflect less risk-taking, and possibly innovation, occurring in the economy.