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Fun With Statistics

by Luke Greiner
February 2017

New Establishments Give Birth to Jobs

Some of the most exciting conversations in economic and community development circles focus on the potential of a new business coming to town which they refer to as births. These are business establishments that are likely opening for the first time, or at the very least employing workers for the first time in a year.

The graphic below illustrates the ratio of jobs created by births to all jobs in the county. For instance, counties with the largest economies will likely have the most jobs gained from new establishments. However, the ratio of jobs gained by births to total employment, uncovers which counties have a large share of jobs being created by new establishments, or establishment births, if you will.

It should be noted that just as jobs are created with the birth of an establishment, losses occur with the death of one also. It’s possible that job gains from establishment births are entirely offset by losses from contractions, temporary closures, and establishment deaths.

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