America’s startup boom is real, but it’s not creating as many jobs as in the past

The U.S. set a record with 3.23 million business applications in the first half of 2026, a 12.1% increase from 2025. However, only 5.7% of these are projected to become payroll businesses within a year, sparking debate over whether the surge reflects genuine growth or filings for side projects, hobbies, or solo ventures. AI tools are enabling startups to operate with minimal staff, reducing immediate job creation.