5 ms·

There's also a company "birth-death" adjustment that tries to account for startup job creation...some argue that it is overstating employment. http://www.ritho

by ckinnan 17y ago

There's also a company "birth-death" adjustment that tries to account for startup job creation...some argue that it is overstating employment. http://www.ritholtz.com/blog/2009/06/birth-death-adjustment-goosed-nfp/ http://www.ritholtz.com/blog/2009/06/birth-death-adjustment-... http://www.bls.gov/web/cesbd.htm http://www.bls.gov/web/cesbd.htm

UncleOxidant 17y ago
The "birth-death" model does overestimate employment - just take the example of the fellow who posted at the top of this thread. Laid off yesterday, starts a new software venture today. 0 income. And probably won't have any income for a few months at least... So yes, new businesses are probably being born at a rapid clip just because people don't have any other options for employment at this point, so why not start something? But the vast majority of those businesses being started now won't show any income for many months... and many of them will just go under (as is always the case).