October 12, 2012

IT'S REALLY JUST A QUESTION...:

When Job-Creation Engines Stop at Just One (CATHERINE RAMPELL, 10/05/12, NY Times)

For more than a decade, start-ups have been getting leaner and meaner. In 1999, the typical new business had 7.7 employees; its counterpart in 2011 had 4.7, according to an analysis of Labor Department data by E. J. Reedy at the Kauffman Foundation, a research organization focused on entrepreneurship.

The lean model bodes well for companies like Leap2 that hope to become power players with much less manpower. With a work force of contractors, Mr. Farmer said Leap2 could "dial it up and dial it down" as business demanded without having to spend money unless it was necessary, improving the company's chances of survival.

But the implications for the American work force are worrisome, and may help explain why economic output is growing much faster than employers are adding jobs. 

...of whether you think companies should create wealth or jobs.  Is their function primarily economic or primarily social?

Posted by at October 12, 2012 8:34 PM
  

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