Real Employment Recovery Seems Impossible as Small Business Conditions Deteriorate

We know that in the aftermath of combined housing busts, financial crises, and recessions, recoveries are typically modest if not halting, even if the recession is deep.

CATHERINE RAMPELL is writing a series of posts on the state of small business in America. Today, she describes how the climate for small business in America is quite good relative to that in other countries. And yet, she worried yesterday, large businesses are much more important to America's economies than they are elsewhere.

Guest blog by Matt Erskine, Acting Assistant Secretary for Economic DevelopmentTo mark the one-year anniversary of the White House Startup America Initiative, in January President Obama sent Congress a proposal to expand tax relief and unlock capital for startups and small businesses that are creating jobs.When he launched the initiative a year ago, the president sought to promote the success of entrepreneurs across the country. The private sector responded with the Startup America Partnership, launching new entrepreneurial networks all across the country. AOL co-founder and member of the President’s Jobs Council, Steve Case, and the Kauffman Foundation joined to form the Startup America Partnership, which is a nonprofit alliance of entrepreneurs, major corporations and service providers that has mobilized more than $1 billion in business resources to serve as many as 100,000 startups over the next three years.This year, the administration unveiled several new agency actions to accelerate the growth of young, job-creating companies, at the same time that new entrepreneur-led regional coalitions are launching throughout the nation.One of those efforts will fuel regional innovation. In the coming months, the Department of Commerce’s Economic Development Administration (EDA), along with several Federal partners, will launch the third round of the i6 Challenge, a multiagency competition which funds regional collaborations to bring innovative, ground-breaking ideas from the lab to the marketplace, creating new startups and jobs across the country. Commerce is also launching a new initiative to connect entrepreneurs with the resources made available through the Startup America Partnership and its partners.

CBI survey shows 37% of

The latest BLS jobs report and the latest Gallup survey on jobs and unemployment are so out of line, that Gallup has commented on it in followup article Unemployment Numbers Suggest U.S. Economic Boom, or Not A careful look at the government's unadjusted household unemployment data shows a stunning 740,000 jobs added to the economy in February -- three times the 227,000 reported based on the establishment payroll survey.

David Goldman submits: Yesterday’s 472,000 jobless claims print once again emphasized how poor the employment outlook has been. What the macroeconomists all have missed is the creative-destruction character of the US economy: jobs are permanently lost at big companies and replaced by startups — except this time, there are no startups.