The patterns in a few notable industries mirror this national trend. By the mid-2000s, for example, the Manufacturing, Retail, and Health Care sectors all had over 90% of their employment at mature firms.
There were exceptions: Accommodation and Food Services and Information sectors.
Restaurants and hotels had a lower share of employment in older firms relative to other industries over the entire time series. This share dipped even lower in the late 1990s, then rose until the early 2010’s, and has been flat or slightly declining since.
The Information sector trended somewhat away from older firms through the tech crash in the early 2000’s but has risen since and is now nearly 95% concentrated in mature firms.
The large and increasing presence of employment at old firms appears to contradict the notion that young startups are the engine of economic growth. However, it is true that young firms are more dynamic and have much greater rates of net job creation.
The Net Job Creation Rate (NJCR) indicates how many more jobs were created than were destroyed relative to overall employment in an industry.
The job creation rate is notably higher for young firms than for old ones — the NJCR has hovered around 15% to 20% for younger firms throughout the time series but was roughly 0% and often negative for more established firms.