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Less Than One Percent of Businesses Employ Half of the Private Sector Workforce

1 min readBy: Andrew Lundeen, Kyle Pomerleau

While over 90 percent of all firms have between 0 and 20 employees, these firms only employ 19.2 percent of all private sector workers. These small firms can be anything from coffee shops to small car dealerships and are organized as both pass-through businesses and C corporations.

On the other hand, while only 0.4 percent of all firms have over 500 employees, this small group of businesses employs 50.6 percent of the nation’s private sector workforce, with most of those employees working for C corporations. In fact, some of the world’s largest companies employ nearly a quarter of a million people each.

For more charts like this, please see our new chart book, Business in America: Illustrated.

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About the Authors

Andrew Lundeen

Director of Federal Projects
Kyle Pomerleau Tax Foundation

Kyle Pomerleau

Resident Fellow, American Enterprise Institute

Kyle Pomerleau is a resident fellow at the American Enterprise Institute (AEI), where he studies federal tax policy.

Before joining AEI, Mr. Pomerleau was chief economist and vice president of economic analysis at the Tax Foundation, where he led the macroeconomic and tax modeling team and wrote on various tax policy topics, including corporate taxation, international tax policy, carbon taxation, and tax reform.