According to a new study from the Kauffman Foundation , new businesses are showing "signs of recovery" in worker turnover. It stands to reason, as the report shows, that startups have a greater percentage of new hires, but the finding that worker churn rates seem to be recovering only at young firms is telling, and may suggest, as the report points out, a slackening in economic dynamism. From the report: Figure 1 shows the rates of job creation and destruction by broad firm age groups from 1998:2 to 2011:1 for a selection of twenty-eight states. These twenty-eight states account for 56 percent of total U.S. nonfarm employment in the second quarter of 1998, according to the BLS’s Current Employment Statistics. Fluctuating around 20 percent, job creation rates for the youngest businesses—those that are zero to one year old—are much higher than for more mature businesses.14 Job creation rates for the youngest firms are twice those in the firm age range of two to ten years and four times as large as the rates for mature businesses (eleven-plus years old). Though less dramatic than the differences in job creation rates, job destruction rates also are higher for the youngest businesses than for more mature businesses. In comparing the job creation and destruction rates across firm age groups illustrated in Figure 1, it is evident that young firms have the largest net job creation rate (the difference between job creation and destruction). For the youngest firms, the net job creation rate in booms exceeds 10 percent and, even in the recent recession, exceeded 6 percent. In contrast, the net job creation rates for more mature businesses are positive in booms and negative in recessions, with a slightly higher average for businesses between two to ten years old than for those eleven years old or older. The finding that the highest net job creation rates are from young firms is consistent with the evidence in Haltiwanger, Jarmin, and Miranda (2010) from the BDS. Job creation rates are procyclical, that is, they rise during economic expansions for all firm age groups, while job destruction rates are countercyclical. Though these patterns are not surprising, the cyclical patterns differ sharply across the 2001 and 2007/09 recessions. While there was a notable increase in the job destruction rate for young businesses in the 2001 recession, the job creation rate for these businesses did not change much. In contrast, the 2007/09 recession exhibited a more pronounced decline in job creation for the youngest businesses, along with an accompanying increase in job destruction. The implication is that the 2007/09 recession hit the youngest businesses much harder than the 2001 recession did. Though the youngest businesses were hit hard in the 2007/09 recession, they are the group that has had the most robust recovery, with their job creation rate growing from 0.18 to 0.23 between 2009 and 2011. Read Job Creation, Worker Churning, and Wages at Young Businesses here .