U.S. establishment survival rates show long-term gaps across states
More than a quarter-century after businesses launched in 2000, only a small share of private sector establishments remains in operation across the U.S. The state-level data show wide differences by geography in 2026, with the Dakotas leading and several large jurisdictions posting survival rates below 15%.
Highlights
- Nationwide, 15.7% of private sector establishments founded in 2000 survive through 2026, according to U.S. Bureau of Labor Statistics data.
- Eight states—including South Dakota (24.7%) and North Dakota (23.0%)—post establishment survival rates above 20.0% for the 2000–2026 period.
- Ten states plus District of Columbia register survival rates below 15.0%, with Washington at 10.3% and California at 11.6%.
State survival data from 2000 cohort
As reported by the U.S. Bureau of Labor Statistics, 15.7% of private sector establishments born in 2000 survive through 2026 nationwide, based on Business Employment Dynamics data.Eight states post survival rates above 20.0% over the 2000-to-2026 period, meaning at least one-fifth of establishments founded in 2000 continues operating through 2026. South Dakota records the highest rate at 24.7%, followed by North Dakota at 23.0%. Pennsylvania, Indiana, Wisconsin, Montana, Nebraska, and Hawaii also exceed the 20.0% mark.
At the other end of the range, 10 states and the District of Columbia register establishment survival rates below 15.0%. Washington stands at 10.3%, while California posts 11.6%.
Implications for business durability analysis
The figures offer a long-run view of business durability at the establishment level rather than the firm level, highlighting how operating conditions can differ significantly across states. An establishment is defined as an economic unit that produces goods or services, usually at a single physical location and engaged in one or predominantly one activity, while a firm can include several establishments.The Bureau of Labor Statistics says the survival data are based on measures of over-the-year employment change from March of each year. The dataset is part of the Business Employment Dynamics program and provides a benchmark for comparing regional business longevity across the U.S.
Our earlier article on early-career job-hopping reviewed research showing that switching jobs in the first years of work is a major driver of wage growth and can help workers find more stable long-term matches. It highlighted evidence that avoiding mobility early on may limit earnings progression, underscoring a gap between cultural skepticism about short tenures and measured labor-market outcomes.
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