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Fewer New Businesses Have Become Employers

From 2005 to 2019, new business applications have increased while new employer businesses have decreased. Find out how this discrepancy between intent to hire and actualization has played out over recent years.

Featured highlights:

  • Between 2005 and 2019, the number of new business applications in the United States increased by 38.9%.
  • Over the same time period, the number of these applications that became employers within eight quarters decreased by 27.8%.
  • The share of new business applications that intend to hire decreased from 34.9% in 2005 to 13.6% in 2019, and the share of new business applications that hired decreased from 21.1% in 2005 to 11.0% in 2019 (projected). In other words, intent to hire among new business applications nationally consistently exceeded the level of hiring activity.