Open for business: Best states for new establishments

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Color map of USAIn this post-recession economy, everyone from industry analysts to politicians to average Americans are looking for ways to gauge the health of businesses throughout the country. This is why each month you hear so much talk of the unemployment rate, housing market, stock market, voluntary turnover, and other reports. Each of these reports is an indicator that, when combined, help paint a picture of where the economy is and where it might be headed.

CareerBuilder and Economic Modeling Specialists International released a new study that offers a glimpse into the health of the business landscape in the U.S. Analyzing net growth in private-sector business establishments between 2009 and 2012,* the study ranks the best and worst states for new establishments in the post-recession economy and sheds light on national trends.

Keep in mind: A business establishment is defined as a single physical location that produces some form of economic activity. One company can have multiple establishments. For example, each convenience store in a large metro area is considered a single establishment even if it’s part of a chain of convenience stores).

Best states for establishment growth from 2009-2012
1. Texas

  • Percentage of all U.S. growth: 22 percent
  • Change in new establishments: Nearly 30,000 (5 percent)
  • Biggest gains: health care and social assistance (12 percent growth since 2009) mining and oil and gas extraction (12 percent); accommodation and food services (10 percent); professional, scientific, and technical services (9 percent)

2. New York

  • Percentage of all U.S. growth: 16 percent
  • Change in new establishments: 21,000 (4 percent)
  • Biggest gains: private educational services (10 percent growth since 2009); accommodation and food services (9 percent); administrative and support and waste management and remediation services (6 percent); health care and social assistance (3 percent)

3. Illinois

  • Percentage of all U.S. growth: 14 percent
  • Change in new establishments: 18,000 (5 percent)
  • Biggest gains: transportation and warehousing (15 percent growth since 2009); other services, except public administration (11 percent); professional, scientific, and technical services (10 percent); health care and social assistance (7 percent)

4. Florida

  • Percentage of all U.S. growth: From 2009 to 2012, Florida accounted for 10 percent of all net new establishments in the U.S.
  • Change in new establishments: 13,000 (2 percent)
  • Biggest gains: accommodation and food services (10 percent growth since 2009); health care and social assistance (7 percent); retail trade (6 percent); professional, scientific, and technical services (5 percent)

5. Washington

  • Percentage of all U.S. growth: 9 percent
  • Change in new establishments: Nearly 12,000 (5 percent)
  • Biggest gains: other services, except public administration (28 percent growth since 2009); health care and social assistance (5 percent); professional, scientific, and technical services (2 percent)

Worst states for establishment growth from 2009-2012
1. Michigan

  • Change in new establishments: Nearly 14,000 fewer (-6 percent)
  • Biggest losses: construction (-16 percent since 2009); finance and insurance (-9 percent); real estate (-7 percent)

2. New Jersey

  • Change in new establishments: 5,500 fewer (-2 percent)
  • Biggest losses: construction (-12 percent since 2009); manufacturing (-10 percent); finance and insurance (-6 percent); retail trade (-3 percent)

3. Idaho

  • Change in new establishments: 2,800 fewer (-5 percent)
  • Biggest losses: construction (-22 percent since 2009); real estate and rental and leasing (-18 percent); finance and insurance (-7 percent)

4. Colorado

  • Change in new establishments: 2,800 fewer (-2 percent)
  • Biggest losses: construction (-17 percent since 2009); real estate and rental and leasing (-7 percent); manufacturing (-7 percent); finance and insurance (-5 percent)

5. Kansas

  • Change in new establishments: 2,700 fewer (-3 percent)
  • Biggest losses: other services, except public administration (-24 percent since 2009); construction (-9 percent); manufacturing (-7 percent)

*2012 is the most recent year with data for new establishment. 

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