Job seekers should recognize that small businesses in the United States:

• A. are responsible for less than 10% of new job creation
• B. typically have higher average wages than large corporations
• C. employ more than half of all private sector workers
• D. are declining in number each year

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the context of the question, which is about the role of small businesses in the U.S. labor market, specifically their contribution to employment.
2. Step 2: Recall key economic facts about small businesses, such as their share of employment in the private sector and their impact on job creation.
3. Step 3: Analyze each statement given in the problem to determine its accuracy based on economic data: (a) small businesses are responsible for less than 10% of new job creation, (b) small businesses typically have higher average wages than large corporations, (c) small businesses employ more than half of all private sector workers, (d) small businesses are declining in number each year.
4. Step 4: Use knowledge from microeconomic labor market studies that small businesses are a major source of employment, often employing a significant portion of private sector workers, which supports statement (c).
5. Step 5: Conclude that the correct statement is that small businesses employ more than half of all private sector workers, based on the economic evidence and labor market data.