Why America’s jobs data may be getting it wrong

He has been a partner of Bryant Stibel & Company

He was previously CEO of the Dun & Bradstreet Credibility Corporation and CEO of Web.com

He is author of The New York Times bestseller "Breakpoint" as well as "Wired for Thought."Job creation looks different nowadays.Getty ImagesDespite last week’s headlines alarmingly soft job growth, millions of Americans have been starting es at unprecedented rates

However the shift is not accounted for in traditional labor statistics, which focus exclusively on W-2 payroll jobs

New formation is a vital piece of the landscape of the United States and can counteract the economic impact of a slowdown of traditional job creation

Adding to the concern, the BLS drastically revised May and June numbers, reporting that the economy grew 258,000 fewer jobs during those months than was previously stated

The news was quickly translated into reduced overall employment, which raised widespread concern

But the BLS numbers give us an incomplete view of jobs in America. formation statistics from the U.S

While this may not seem a large growth number, it is monumental compared to the significant declines that were being recorded last year when traditional job growth was accelerating

Even more importantly, new formations have become increasingly important to the economy and job growth since Covid, yet it is largely ignored in the BLS job report

Jeff Stibel formations and job growth are counterbalancing factors in the U.S. economy and any economic indicator needs to factor in both measures, especially given the surge in new es since Covid

Newly formed companies create jobs immediately for their founders and over time for other job seekers, pulling people out of the traditional labor market that the BLS exclusively tracks

This artificially inflates unemployment assumptions

Historically, there has been a strong relationship between economic change and entrepreneurship

Lack of traditional job opportunities inspire people to create jobs for themselves and building a new has never been easier

Artificial intelligence in particular has enabled individuals to launch ideas with minimal startup capital, experience, or risk

Readily available tools can build websites, write copy, design graphics and logos, and even find customers

AI can analyze market re and offer pricing strategies and financial jections frictionlessly

This rapid change is accelerating the shift toward self-employment and micro creation, not to mention an increase in freelancing, consulting, and “side hustles.” MarketWatch reported in April 2025 that 51% of Americans have a side hustle, with the country’s youngest workforce participants leading the charge—72% of Gen Z reporting a side hustle in the past year

With people entering the job market overwhelmingly pursuing alternative jobs and individuals retiring from the workforce leaving behind traditional jobs, shifts in employment type should not surprise or alarm us; rather, we should track and incorporate these changes into our thinking and analytics

While unconventional jobs may be untraditional, they are real jobs nonetheless, with a significant economic impact

Jeff Stibel Traditional labor statistics are built on outdated employment models

As the nature of work changes, we need more modern methods to accurately assess the true health of the economy

A more complete measure would integrate a diversity of data sources, including new registrations and freelance platform activity, in addition to polling larger es and households

With an expanded palette, we could color a more accurate picture of modern labor dynamics

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