The most vibrant piece of the most recent QCEW report for Q2 2015 was the 2.8% over-the-year increase in the number of employing establishments. These are not necessarily startups, as they can be new locations of existing corporations, but it is nevertheless encouraging to see some action in this vital component of the job machine. As we often point out, young businesses generate a mighty share of gross job gains, even if they fail at an alarming rate as well. The failure rate, though, has a bright side in that it reallocates resources, which contributes to productivity. (As does job churn—when workers move between jobs they often carry innovative ideas with them.)
And new employing establishments are the ones who would really benefit from low rates on their loans, which they can still ink.This is, of course, only one quarter, which doth not a trend make. It would be great news if demand remains steady enough to give would-be entrepreneurs the confidence to build their businesses.
Here’s the super-sectoral breakdown:
