Job creation fell to 29-year low during Great Recession as nation shed 14 million jobs
Washington, DC, United States (AHN) – Job creation during the Great Recession sank to its lowest rate in 29 years, according to a report released Wednesday by the entrepreneur-focused Kauffman Foundation.
The report looked at the number of jobs created by all types of companies during the depths of the recession.
Research from the Census Bureau’s Business Dynamics Statistics (BDS) found that job creation hit a record low from March 2008 to March 2009, while the country at the same time lost 14 million jobs.
In addition, researchers looked at the period from 2006 to 2009. They found that while overall job creation fell by 25 percent, the situation was worse for startup companies than for existing firms.
While startups have traditionally been the job-creation engine that pulls the nation out of economic crisis, the situation during the most recent recession was different. Job creation at startup companies fell by 34 percent from 2006 to 2009. Kauffman Foundation said that in prior recessions startups suffered losses that were more moderate.
The BDS is partially funded by the Ewing Marion Kauffman Foundation for the purpose of giving annual business data on U.S. firms and establishments with paid employees.
“While we know all too well that jobs were lost, this is the first indication of how the recession impacted job creation. It’s heartening to know that, despite the economic obstacles, entrepreneurs were still finding ways to create jobs, though fewer than in past recessions,” said Robert E. Litan, vice president of research and policy at the Kauffman Foundation. “We hope these data prompt policymakers to clear away any rules and regulations that stand in the way of entrepreneurs and innovators who want to grow companies and jobs.”
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