Millions of Americans have started businesses at unprecedented rates since 2020, reflected in a 6.48% growth in business formations. Traditional labor statistics often overlook this trend, focusing solely on W-2 payroll jobs. In July 2025, the Bureau of Labor Statistics reported only 73,000 new jobs added, falling short of population growth. The importance of new businesses in creating jobs counterbalances the slowdown in traditional job creation, suggesting a need for economic indicators to include this crucial aspect of employment.
New business formation is a vital piece of the business landscape of the United States and can counteract the economic impact of a slowdown of traditional job creation.
Job growth numbers from the Bureau of Labor Statistics (BLS) miss this point, highlighted by the most recent data: The economy appears to have added only 73,000 jobs in July 2025.
Business formation statistics from the U.S. Census Bureau shows 6.48% growth from Q1 to Q2 of this year, monumental compared to significant declines from last year.
Newly formed companies create jobs immediately for their founders and over time for other job seekers, pulling people out of the traditional labor market.
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