More people who lose their jobs start up their own businesses. In the recent recession a large number of failing companies abruptly ceased all operations. The recent recession contributed to the growing preponderance of service jobs over manufacturing jobs. More jobs are lost in a recession than in a period of growth.
At the beginning of each month, companies report to the federal government their net loss or gain in jobs over the past month. These reports are then consolidated by the government and reported as the total gain or loss for the past month. Despite accurate reporting by companies and correct tallying by the government, the number of jobs lost was significantly underestimated in the recent recession.
Which one of the following, if true, contributes most to a resolution of the apparent discrepancy described?