The decline in gross job gains

This is from 2009, but I haven’t seen it receive a useful discussion:

These facts demonstrate that a relatively small number of establishments (41,000 to 50,000) changing their employment levels by 20 or more jobs has been sufficient to create or lose approximately as many jobs as the more than 1.5 million establishments that changed their employment levels by just a few jobs.

See charts three and four for a vivid illustration of the effect, or here is another presentation of the idea, reflecting the diminishing rate of creative destruction in the American economy:

The levels of gross job gains and gross job losses prior to the 2001 recession are noticeably higher than the levels following the 2001 recession.

For the pointer I thank David Berger.


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