Gross domestic product grew at a 0.7% annual rate in the first quarter from the preceding three months, the Commerce Department said Friday. Economic output has grown an average of roughly 2% during the nearly eight-year expansion.
During the latest expansion, new establishments have accounted for a little more than 11% of all new private-sector jobs created in the U.S. During the 1990s, the figure was 15%, according to Labor Department data released Wednesday.
That may seem a small shift, but those few percentage points add up to nearly 300,000 jobs a quarter. Separate data from the Commerce Department show the trend goes back even further. The share of private firms less than a year old has dropped from more than 12% during much of the 1980s to only about 8% since 2010.
Once known for casinos and brothels, Reno is now attracting corporations drawn by its low costs, lenient permitting rules and relative proximity to Silicon Valley. Other big corporations that have recently built data centers, factories and distribution centers at the industrial park include Apple Inc., Wal-Mart Stores Inc. and eBay Inc.
The decline in homeownership rates to near 50-year lows is partly to blame for the U.S. economy’s sluggish recovery from the last recession, new data suggest.
If the home-building industry had returned to the long-term average level of construction, it would have added more than $300 billion to the economy last year, or a 1.8% boost to gross domestic product, according to a study expected to be released Monday by the Rosen Consulting Group, a real-estate consultant.