Businesses are Booming!
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What do I mean by “businesses are booming?” Well, put it simply business applications in the United States have been on an absolute tear over the last 3 years and are making record new highs each year for the last three years. In 2019, there were 3.4 million business applications. In 2020 we saw a 29% increase to 4.4 million applications. In 2021, we saw another big jump, up another 22% to 5.4 million. I guess this is one of the many reasons for the “great resignation” that we’re currently experiencing across the United States.
If we look at the chart below, business applications for manufacturing are also booming to record highs! This is great news as many manufacturing jobs have moved offshore or to foreign countries over the last three decades. Also, due to the supply chain nightmare, maybe companies will finally be going back to the good old days of “Made in America”.
As of January 22nd, we can get a little more granular as to where businesses are popping up by each state over the last week. California, Texas, and Florida all had 10,000+ business applications over the last week.
Conclusion: I think this an interesting trend and I will be watching this closely to see if this continues in the coming months. I do think this an issue for employers as more people leave the workforce in pursuit of their own businesses, this could cause even more wage inflation and make it more difficult to find qualified replacements.
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