The buzziest part of the economy — the social media startups centered in Silicon Valley — were once heralded as a way to kickstart the economy. Now that there's some good news on the job front — unemployment lower than it's been since January 2009 and 114,000 new jobs last month — it's clear that's not where job growth is coming from. Back in the depths of the recession, when manufacturing and financial services jobs were getting hammered, many predicted that the start-up scene would help lift us out of the recession. See: "Stimulus 2.0: It's The Startups, Stupid," a 2009 editorial LinkedIn founder Reid Hoffman wrote in The Washington Post. Even the White House looked at this opportunity, enlisting Google's Eric Schmidt to consult with President Obama on an economic plan to "jumpstart innovation."
But new businesses aren't where this recovery is at, as The New York Times's Catherine Rampell reports. Not only have fewer new establishments opened, but the ones that have hire fewer employees, as the graphs below, also via the Times, show.
So, if it's not tech and social media start-ups, where has all this job creation come from? Most of the new jobs last month came from health care, transportation and warehousing and financial services, with little change in other major industries, including the sectors under which social media start-ups and apps would fall, according to the Bureau or Labor and Statistics. Let's take a closer look at what that really means.