This paper analyzes which firms and industries contribute to job creation, using micro-data from the Establishment and Enterprise Census over the period 1996-2006. Our main findings are summarized as follows. 1) Most job creation occurs in service sector, whereas the manufacturing and construction sector, which was experienced overseas production transfer, restructuring, and the decline of public spending, account for most job destruction in the macro economy. 2) As Haltiwanger, Jarmin and Miranda (2010), we find no systematic inverse relationship between net growth rates and firm size. The firms with fewer than 5 employees and with 500-5000 employees account for most newly-created jobs. 3) We find that the large proportion of job creation is accounted for by relatively young firms, rather than by small and medium sized firms. 4) Foreign-owned firms and firms majority-owned by domestic firms contribute to net job creation. Most job creation by foreign-owned firms occurs by net growth of employment through entry and exit. Furthermore, we investigate in which industries the ratio of young firms is high and how many young firms grow to become large firms. The result is that the younger firms are most active in communications, finance and insurance, business services, machinery and personal services.
