PAI: New businesses have not come with lots more jobs

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PAI: New businesses have not come with lots more jobs

Fri, 11/17/2017 - 2:23pm -- tim

Public Assets Institute Vermont’s unemployment held steady at 2.9 percent last month—the sixth-lowest rate in the nation. But that was the rate for all workers. For the last few years, joblessness among men has exceeded the rate for women by almost a full percentage point.

New launches
Every year Vermonters start hundreds of businesses, but hundreds of businesses also close. Before the recession Vermont saw a net increase of just under 100 new business establishments each year. When the recession hit, the state lost more businesses than it gained. But for the last six years, Vermont has seen a net gain of more than 100 business launches annually.

Less help wanted
Even with an increase in new businesses and expansion of existing ones, Vermont employers are not creating as many jobs as they used to—about 20 percent fewer than they did 20 years ago. At the same time, Vermont is losing fewer jobs than it did—there’s less “churn” and a small net gain.

Public Assets Institute 11.17.2017 publicassets.org