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A Factor in the Bizarre Great Resignation & Labor Shortage Phenomenon: The Huge Surge of Americans Starting Businesses | Wolf Street

By Thomas A. Smith

New business formations in December, based on applications for an Employer Identification Number (EIN) with the IRS, jumped another 20% from the already high December last year, and by 34% from December 2019, according to the Census Bureau.

The explosion of business applications began in June 2020 when stimulus checks, extra unemployment benefits, PPP loans, and other government moneys washed over the land and when millions of jobs just vanished. And it continued through December 2021. But the spike has been losing some steam in recent months:

via wolfstreet.com

This is a good thing. Also, the level of job openings is probably exaggerated, as some employers are “double booking” their openings, looking for decent hires.