Boston Fed Says Small Firms Drove 90% of New England Job Gains, Outpacing U.S.
Updated
Updated · What'sUpNewp · Jul 19
Boston Fed Says Small Firms Drove 90% of New England Job Gains, Outpacing U.S.
1 articles · Updated · What'sUpNewp · Jul 19
Summary
Nearly 90% of New England’s net job creation from 2020 to 2023 came from small businesses, which employed more than 3.2 million workers in 2023, or 47.5% of the region’s jobs.
That share topped the national 46.3% rate, with the Boston Fed saying much of the hiring came from young firms that start small and expand quickly rather than from mature large employers.
Vermont stood out: small businesses accounted for 63% of state employment, and every county in Vermont, Maine and Rhode Island had a higher very-small-business employment share than the national level.
The report also flagged pressure points for small firms, especially inflation and insurance costs; a recent U.S. Chamber survey found 57% cited inflation as their biggest challenge, up from 48% a year earlier.