Back from a great vacation to Cape Cod, which except for 3 days of torrential rain, was awesome. I was catching up on some small business news, and came across this article about job losses broken out by business size.
I’ve already chimed in about the small business economy, but what I found interesting about this article was the amount of churn being reported. Churn is the replacement of old jobs with new jobs. For the approximately 3.2 million small business job losses each quarter, there is a gain of about 3.1 million jobs.
This is a huge amount of churn. Why such a big number?
One obvious theory is that small firms come and go faster than big firms, thus the bigger number. But I wonder if there is something else going on here? Is the churn simply a reflection of a new way of working – one in which switching jobs and careers is normal? I discussed this in a previous post, check it out.
