America’s missing 2.5 million jobs…and two more important facts you should know

by Ryan Streeter on February 16, 2013. Follow Ryan on Twitter.

Jim Pethokoukis wrote last week that President Obama basically ignored the important role of entrepreneurship in job creation in his State of the Union speech.

I thought these 3 facts Jim cited were worth highlighting…and spending some time thinking about:

1. Had small business come out of the recession maintaining just the rate of start-ups generated in 2007, according to McKinsey, the US economy would today have almost 2.5 million more jobs than it does. (emphasis added)

2. There were fewer new firms formed in 2010 and 2011 than during the Great Recession.

3. The rate of startup jobs during 2010 and 2011, years that were technically in full recovery, were the lowest on record, according to economist Tim Kane of the Hudson Institute.

These are stunning figures.

Jim also includes the following chart, which shows that the foregoing data points are part of a longer-term decline in startup activity:

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