Record Job Creation in Kansas City: Small Businesses Lead the Surge
A New Era of Job Growth
Kansas City has observed an unprecedented surge in job creation. In a new report, the city’s small businesses and tech startups were identified as the main drivers behind an employment boost experienced in 2022. The job market saw an addition of over 19,700 positions, an achievement not realized over the past five years, thereby putting Kansas City’s job market on the map like never before.
Small Businesses Creating a Big Impact
As first-time employers with fewer than 20 employees, these small businesses and startups were responsible for the creation of 19,771 jobs in 2022, a significant increase compared to the average of 17,089 jobs created each year from 2018 to 2022. This surge in job creation has accounted for 66 percent of all new jobs in the Kansas City metropolitan area in 2022.
“By improving access to support and resources, our entrepreneurs are building stronger businesses and a stronger economy,” says Michael Carmona, a Network Builder. Despite the challenges brought on by the pandemic, these entrepreneurs could meet these challenges and found new ways to move forward, thereby supporting their communities towards recovery.
Detailed Data on Job Creation
The data from the jobs report further indicates that the average wage for new jobs in the tech sector is 55 percent higher than the average wage of all new jobs. This sector’s startups created 1,767 jobs in 2022 and averaged 1,278 new jobs from 2018 to 2022. The number of startup firms in the Kansas City area in 2022 was 9,008, an increase from 8,197 in 2021. These startups are present on both sides of the state line and in every county within the region.
The Strength and Impact of the Kansas City Economy
The impact of new and young firms on the Kansas City area’s economy is substantial. Through the utilization of data from the Quarterly Census of Employment and Wages for Kansas City, a statistical analysis of the number of jobs from first-time employers who paid for unemployment insurance for the first time was conducted. This number only included employers with 20 or fewer employees.
Supporting the Startup Ecosystem
The mission is to help small businesses grow and prosper by providing easy access to needed services. The adoption of these initiatives has already begun to highlight gaps in the entrepreneurial ecosystem which can be addressed by its partners. This is just one of the ways that the generation of new jobs by these startups can help pave the way toward a brighter future.
