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Jack Biedebach, CFP®
LPL Financial Advisor
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New Businesses May Be Good News for the Economy

After taking a nosedive at the start of the pandemic recession (gold shaded area), business applications rose sharply, peaking in July 2020. Applications have fallen somewhat since then but are still up approximately 84% from their April 2020 low. Businesses that are likely to hire employees — called high-propensity businesses — make up approximately one-third of total applications. Businesses with payroll are considered more likely to power job growth and economic recovery.

Total business applications fell to a low point of 234,838 in April 2020 and peaked at 552,748 in July 2020. They later fell to 432,034 in November 2021. High-propensity business applications, which had held at about 100,000 per year since 2017, dropped to 77,037 in April 2020 before rising to 176,065 in July 2020. As of November 2021, they were at 144,369.

Source: U.S. Census Bureau, 2021 (data for the period January 2017 to November 2021)