Econintersect: From the President on down, politicians continue to mouth the importance of jobs growth. This did not start with the Obama Administration – but has been front and center for over 100 years.
The BLS’s Business Employment Dynamics Summary for the 2Q2010 highlights the dysfunction between words and results. One chart particularily shows this dysfunction.
The above Chart 3 shows the trend line only for job openings and closings at new business being born or loss of jobs at business dying. It ignores gains or losses at existing business. While economists continue to mouth that small business is the incubator of jobs – the BLS documentation is saying that the jobs growth effect of new business startups is declining.
The positive news from this chart is that fewer businesses are dying – and that follows a similar trendline.
This is old data (even though just released), and the jobs picture is currently better then the graphs show. The graph shown below (Chart 1) shows the effect of job losses and gains for all business.
Over the period of Chart 1, the population grew almost 10%, yet the job losses and gains have a negative bias.