Over the past few years, Idaho has reported one of the highest growth rates for both population and employment. The state has also seen high levels of business startups, driven by a historically large increase in small employer establishments, those with fewer than five employees on payroll.

Idaho employer establishments with fewer than five employees accounted for 73% of all employment establishments in 2023 and comprised 86% of total employer establishment growth over the past five-year period from 2018-2023. These small employers had both the fastest establishment growth rate statewide of all firm sizes and also increased their contribution of statewide covered employment from 8% in 2018 to 10% in 2023.

All industries experienced growth in the number of active employers, but the highest increases were driven by entities with fewer than five employees in business and professional services, health care and construction.

The fast growth rate of Idaho’s smallest employers has provided unprecedented labor mobility opportunities but doesn’t come without its risks. Smaller employers are generally younger and face more obstacles to overcoming financial challenges than their larger, more established peers. While some of these small employers may eventually grow to be future anchors of local employment, there is also a higher probability that they may not be actively operating five years down the road.

Read more in the report.

This project is funded by the U.S. Department of Labor for SFY25 as part of the Workforce Information Grant (40%) and state/nonfederal funds (60%) totaling $885,703.

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