Business Formation and Employment Dynamics During the COVID-19 Pandemic

Simeon Alder

Executive Summary:

This update includes a summary of the most recent weeks of applications for Employer Identification Numbers (EINs) in Wisconsin and five additional Midwestern states. Two trends have emerged more clearly since our July 30, 2021 update: (1) Weekly business applications have been gradually declining since early April, not just in Wisconsin, but across the Midwest and the nation. (2) The flow of applications in the second semester of 2021 so far is significantly lower than in 2021. Together, these two trends suggest that the forces behind the surge in business applications during the COVID-19 pandemic may be losing some steam.

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