Wednesday, September 26, 2018

3/4ths of the Nation’s Businesses Don’t Have Paid Employees

Written by Adam Grundy

Article from US Census Bureau

You could look at the total number of establishments in the United States using just the U.S. Census Bureau’s County Business Patterns (CBP) data. But if you did, you would only be getting a partial view of the economic landscape.

That’s because CBP only provides data on businesses that have employees on their payroll. But, in 2016, only 23.8 percent of the 32,570,855 establishments in the United States had paid employees.

That means the remaining 76.2 percent of establishments were nonemployers or establishments that don’t have any paid employees. And those data come from the 2016 Nonemployer Statistics (NES).

The majority of all business establishments in the United States are nonemployers, yet these nonemployer establishments average less than 4 percent of all sales and receipts nationally.

So, to get a full picture of U.S. businesses in 2016, you have to look at both CBP and NES data programs.

The U.S. Census Bureau just released a report that combines both sets of data for the first time.

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