Stephanie Ferguson Melhorn
Senior Director, Workforce & International Labor Policy, U.S. Chamber of Commerce
Published
January 16, 2025
The 12 economic indicators in our annual State of American Business Data Center help measure the health of business and the economy. At the start of 2025, many indicators are stable or showing positive growth, as you will see in the data visualizations below. The economy is poised to grow even stronger this year than it did in 2023 and 2024, leading to more opportunities for workers and businesses.
But Americans experience economic growth where they live, work, learn, and shop—at the local level. Whether that’s through a new small business opening in their neighborhood, a company headquarters bringing jobs to their community, or business-driven tax revenue improving schools and public safety.
This year, the Dallas-Fort Worth area served as the backdrop for State of American Business 2025, chosen for its dynamic and growing economy to showcase what growth can do and how it can be replicated in other parts of the country.
WATCH THE PROGRAM: The State of American Business 2025 Is Local
American Business Is Local
Before diving into the 12 national economic indicators, here is a look at the local economy in Dallas-Fort Worth and four other dynamic cities across the U.S.
Click below to reveal the key stats for each city.
Business by the Numbers: 12 Key Indicators
We compiled detailed analyses and data visualizations for 12 key national economic indicators to measure the health of the economy and business community. A summary of the trendlines is captured in the graphic below.
How was the national economy in 2024? See last year's State of American Business Data Center.
Worker Shortage: 8.1 Million Unfilled Jobs
Shifting population demographics paired with outdated restrictions on legal immigration are resulting in a workforce that isn’t growing rapidly enough to meet the needs of the economy.
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8.1M
Unfilled jobs in the U.S.
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6.9M
Unemployed workers in the U.S.
The Chamber’s Worker Shortage Index number indicates the number of available workers for every job opening. The current Worker Shortage Index reading is 0.92. This means that for every 100 job openings there are only 92 available workers. Despite recent improvement, the labor market remains historically tight and employers across the nation continue to struggle to fill their open roles.
Bottom line: Solutions exist to ease the worker shortage. Government and business leaders need to work together to:
- Increase legal immigration while securing the border.
- Expand access to quality, affordable childcare for working parents.
- Create pathways for veterans and military spouses, formerly incarcerated individuals, individuals with disabilities, and retirees to secure good jobs.
- Invest in building a skilled workforce for the jobs of today and tomorrow.
The Chamber's America Works Initiative details these solutions, and more.
IPO Market, Loan Markets Improve
Businesses need capital to start their enterprises, to run them efficiently, and to grow. Business growth is stronger when capital is more accessible. The issuance of initial public offerings (IPOs) is an indicator of the vitality of the economy. More companies go public when growth prospects are strong and they need access to the deep pool of capital going public affords.
The private sector plays a leading role in driving innovation to solve problems, but the number of IPOs coming to market has dropped below average. Higher taxes, government overreach, and overregulation saps the innovation needed in our economy.
The surge in IPOs in 2021 was in large part due to the growth in Special-Purpose Acquisition Companies. Before the SPAC surge, there was little growth in the number of IPOs. SPACs have declined due to rising interest rates which have suppressed mergers and acquisitions.
The 94.2% drop in dollar value of IPOs in 2022 is mostly the result of SPACs falling off. Fewer IPOs, aside from the drop in SPACs, also played a role, albeit smaller.
Before the 2022 drop, the dollar value of IPOs had strong growth, a result of bigger companies going public after spending more years private. More traditional IPOs, where younger companies acquire the capital they need to grow from the offering, would make the economy more vibrant and dynamic.
Bottom line: Smart government policy will help the economy by encouraging, not disincentivizing, companies to go and stay public. The more vibrant, growing companies, the better for American workers that benefit from stronger wages.
For smaller businesses, Commercial and Industrial (C&I) Loans are their primary source of vital capital to grow and thrive. The value of C&I loans issued has been strong.
Bottom line: So far, higher interest rates have not been a major hindrance for C&I loans.
Consumer Spending Strong
Businesses exist to serve their customers. The more customers they have, and the more those customers spend on an ongoing basis, the better it is for business. Consumers have continued to spend despite inflation and turbulent economic conditions over the past few years.
Even though inflation remains elevated, spending is still surpassing it. For example, retail sales—spending at retail stores, bars, and restaurants—rose by 0.7% in November 2024, outpacing the rate of inflation for that month. Prices rose 0.3% in November 2024, so even adjusted for inflation, retail sales still rose by 0.4%.
Inflation is down from the peak of 8.8% in June 2022, but is still above the Federal Reserve’s 2% target rate. Core prices, which strips out volatile elements like food and energy, is a metric the Fed looks at closely, and it is still above the 2% target.
Bottom line: Wages have been rising above inflation, which should allow consumers to continue spending, but if wages lag inflation and cause consumer spending to drop, the economy will slow.
Supply Chain Strains Ease
U.S. businesses are linked through a global web of interconnected supply chains and rely on them to access consumers and compete in the global marketplace.
An efficient supply chain is crucial to business growth. The New York Federal Reserve tracks pressure on the global supply chain. Higher levels indicate higher stress on the system.
Pressure on the global supply chain was stable for years leading up to the pandemic. It spiked during the pandemic but has come down since. Strong trade and workforce policies are necessary to ensure pressures do not spike again.
Bottom line: A well-functioning supply chain is a key component of reducing inflation.
Energy Prices Steady
Energy is an enormous cost for businesses and consumers. When energy prices rise, businesses have to absorb those costs and their earnings decline, and sometimes they have to pass them on to customers in higher prices.
In 2024, crude oil prices began to trend upward after dropping over the last year.
Record U.S. oil and gas production in the wake of sanctions on Russia has helped bring stability to global energy markets and security to America, and its allies and trading partners.
Bottom line: American energy production delivers economic advantages to U.S. families and businesses and diminishes the economic strength of aggressors like Russia. The most important thing Washington can do this year to help is to make progress on permitting reform, dial back harmful regulations, and send long-term signals to energy producers to give them the confidence and certainty they need to invest.
An Uneven Innovation Ecosystem
For the economy to continue growing, it must foster innovation. Existing businesses need to create new products and improve existing ones. New businesses are needed to bring fresh ideas to market.
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134K
U.S. patents granted in 2012
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168K
U.S. patents granted in 2022
The number of patents issued is a measure of how much innovation is occurring in the economy over time — and the U.S. continues to churn out patents in strong numbers.
The pandemic brought the number of patents issued in the U.S. down, but only slightly. However, while the number of patents issued is strong, less than half go to U.S. residents.
Overall, the U.S. is still the prime place for innovation globally. But we need more innovation from U.S. residents, and we need to make it easier and more inviting for innovators from other countries to bring their ideas here.
The U.S. Chamber's International IP Index evaluates intellectual property (IP) rights in 55 global economies across 50 unique indicators — from patent and copyright policies to ratification of international treaties. In the 2024 report, the overall scores improved in 20 economies, creating renewed optimism about the future of global IP policy.
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3.5M
Total new business applications in 2019
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5.2M
Total new business applications in 2024
Like patents, new businesses are a big generator of economic growth. The more new businesses, the better, because having strong numbers of new businesses increases the potential amount of future high-performing enterprises and well-paying jobs.
The years 2020 and 2021 saw a huge increase in new business applications. Nearly 5.4 million applications were filed to form new businesses in 2021 — the highest recorded since the U.S. Census Bureau started tracking this data in 2004.
The surge in entrepreneurship continued through 2024. The total number of new business applications for 2024 was 5.2 million.
Bottom line: The Chamber supports and fights for policies that keep small businesses thriving, including advocating for a tax and regulatory environment that helps—not hurts—entrepreneurs to create jobs and to serve our communities and the economy.
Growth is Brought to You by American Business
Behind the national indicators, all business is local. It’s the small businesses that line Main Street, but it’s also the national chain restaurant where you had your first job, or the energy producers that power your vehicles so you can drive across town. America is powered by businesses.
This is evident in our Brought to You by American Business series, which highlights examples of how businesses bring important cultural events to life, creating economic growth and unforgettable moments in local communities. For example:
- U.S. florists prepare 250 million roses for Valentine’s Day annually
- Airlines served 167 million travelers for Spring Break travel in 2024
- Global outdoor grill market revenue grew to $5.24 billion in 2024, driven by American’s proclivity for summer BBQs
- U.S. farmers raise 6 billion pounds of turkey to support Thanksgiving feasts
American businesses of every size and industry go above and beyond every day to support their employees, serve their customers, and create experiences that drive economic growth.
Conclusion
American businesses continue to make investments that improve the lives of individuals and build strong communities. Strong, sustained economic growth is key to ensuring individuals feel the benefits of the free enterprise system in their day-to-day lives.
That’s why the U.S. Chamber launched the Growth and Opportunity Imperative, calling on policymakers to support policies that achieve at least 3% annual real economic growth over the next decade—a 50% increase over current projections.
Republicans and Democrats alike must prioritize completing work on pro-growth priorities like immigration, artificial intelligence, and permitting reform to secure a stronger future for Americans.
Read More
About the authors
Curtis Dubay
Curtis Dubay is Chief Economist, Economic Policy Division at the U.S. Chamber of Commerce. He heads the Chamber’s research on the U.S. and global economies.
Stephanie Ferguson Melhorn
Stephanie Ferguson Melhorn is the Senior Director of Workforce & International Labor Policy. Her work on the labor shortage has been cited in the Wall Street Journal, Washington Post, and Associated Press.
Isabella Lucy
Isabella has created stunning visualizations tackling pressing issues like the worker shortage, the benefits of hiring veterans, the lifespan of small businesses, and the future of work.
