The end result of this boom in new businesses has been that, for the first time in decades, the share of workers employed by young firms is rising. In 2022, 11.3% of jobs were in firms less than 5 years old, the highest share since 2010, and 8.6% of jobs were in firms 6-10 years old, the highest share since 2014. Plus, in several key sectors, the rise in employment at young firms has been even more pronounced, with the share of jobs in companies below 5 years old or younger rising 1.3 pp in transportation/warehousing, 0.9 pp in Management and Information, and half a pp in Manufacturing. Of course, that still means the vast majority of Americans are employed at firms that are more than a decade old, highlighting just how prolonged the decline in business dynamism has been, but that trend is now finally beginning to be reversed.
- Date Posted:
- January 12, 2024
US electricity demand is booming after years of stagnation, driven by emerging technologies such as artificial intelligence and electric vehicles and prompting warnings over the stability of the power grid. Retail sales of electricity will total nearly 4bn kilowatt-hours this year, a record, the government’s energy analysis agency forecast this week. Grid Strategies, a US consultancy, said that nationwide forecasts for electricity demand growth over the next five years had “shot up” from 2.6% in 2022 to 4.7% in 2023, in a report based on an analysis of utility filings to the Federal Energy Regulatory Commission. The largest driver of increased electricity demand was $481bn in industrial projects that have been announced since 2021, including the manufacturing of chips and batteries. Another big driver was the anticipated construction of $150bn in new data centres by 2028 and clean technologies such as electric heat pumps, water heaters and cars.