Firms 2 years old or younger have led the way when it comes to post-recession hiring and job creation, according to a report the Ewing Marion Kauffman Foundation released Wednesday.
Only startups have shown signs of worker churn, which offers evidence of a recovery, the report said.
“Unless labor markets have improved at early-career job matching, a degeneration in churn rates may indicate that the U.S. economy is becoming less dynamic,” said Dane Stangler, research and policy director at the Kansas City-based Kauffman Foundation. “If workers have fewer opportunities to change companies and job roles, as this research indicates, it will be harder for them to advance their careers and grow their earnings.”
The study notes that during recessions, firms are more cautious about hiring, and employees are more likely to stay put. And although younger businesses did show modest signs of recovery after the 2008 recession, the study says that a drop in churn rates after the first quarter could be indicative of declining worker and business confidence.