Economics

Killing the gazelles: Where are the jobs? No, where are the qualified workers?

Young, fast-growing companies are incredibly important job creators:

Further, the study [by the Kaufmann Foundation] showed, so-called “gazelle” firms (ages three to five) comprise less than 1 percent of all companies, yet generate roughly 10 percent of new jobs in any given year. The “average” firm in the top 1 percent contributes 88 jobs per year, and most end up with between 20 and 249 employees. The average firm in the economy as a whole, on the other hand, adds two or three net new jobs each year.

But guess what the top concern of  the gazelles is?

The Atlanta Fed’s blog, which created the table, concludes thusly:

The interesting thing about the Kauffman survey is that the overwhelming problem reported by those companies that are in growth mode is the inability to find qualified workers. That observation is important because it bears on such questions as: To what degree is our elevated unemployment rate structural? How do we explain the observation that the number of unemployed workers appears to be elevated relative to the number of reported job vacancies? and so on.

Solutions: More high skilled immigration today, better teachers–or at least fewer bad ones–tomorrow.

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