The U.S. Census Bureau (Bureau) announced the seasonally adjusted statistics for business applications and formations for May 2025. According to the Bureau, business applications decreased in May.
“The Business Formation Series describe employer business formations as indicated by the first instance of payroll tax liabilities for the corresponding business applications,” according to a release by the Bureau.
Business Applications – At a Glance
Business Applications for May were 446,993, a decrease of 0.6% compared to April 2025.
Projected Business Formations – At a Glance
| Within 4 Quarters | MAY 2025 | 28,303 | 4,340 | 4,610 | 11,025 | 8,328 |
| MAY 2025 / APR 2025 | -0.1% | -0.7% | +2.2% | +2.2% | -3.8% | |
| Within 8 Quarters | MAY 2025 | 39,220 | 6,005 | 6,229 | 15,592 | 11,394 |
| MAY 2025 / APR 2025 | -0.4% | -0.6% | +0.5% | +2.1% | -4.0% |
Business Formations
Forward-looking projected business formations (within 4 quarters) for May 2025 were 28,303, a slight decrease of 0.1% compared to April 2025. The formations provide an estimate of the number of new business startups, not an estimate of the total number of business startups that appeared within a specific month.
Business Applications by Industry – At a Glance
| 11: Agriculture | MAY 2025 | 3,567 | ||
| MAY 2025 / APR 2025 | -0.3% | |||
| 21: Mining | MAY 2025 | 443 | ||
| MAY 2025 / APR 2025 | -4.5% | |||
| 22: Utilities | MAY 2025 | 647 | ||
| MAY 2025 / APR 2025 | -5.5% | |||
| 23: Construction | MAY 2025 | 41,723 | ||
| MAY 2025 / APR 2025 | -1.9% | |||
| 31-33: Manufacturing | MAY 2025 | 6,306 | ||
| MAY 2025 / APR 2025 | -2.5% | |||
| 42: Wholesale Trade | MAY 2025 | 10,228 | ||
| MAY 2025 / APR 2025 | +9.4% | |||
| 44-45: Retail Trade | MAY 2025 | 82,147 | ||
| MAY 2025 / APR 2025 | -1.9% | |||
| 48-49: Transportation and Warehousing | MAY 2025 | 30,153 | ||
| MAY 2025 / APR 2025 | -1.6% | |||
| 51: Information | MAY 2025 | 8,947 | ||
| MAY 2025 / APR 2025 | -5.5% | |||
| 52: Finance and Insurance | MAY 2025 | 18,399 | ||
| MAY 2025 / APR 2025 | -2.6% | |||
| 53: Real Estate | MAY 2025 | 21,245 | ||
| MAY 2025 / APR 2025 | +0.9% | |||
| 54: Professional Services | MAY 2025 | 64,379 | ||
| MAY 2025 / APR 2025 | +1.9% | |||
| 55: Management of Companies | MAY 2025 | 5,261 | ||
| MAY 2025 / APR 2025 | +0.2% | |||
| 56: Administrative and Support | MAY 2025 | 31,036 | ||
| MAY 2025 / APR 2025 | +1.5% | |||
| 61: Educational Services | MAY 2025 | 6,565 | ||
| MAY 2025 / APR 2025 | -1.9% | |||
| 62: Health Care and Social Assistance | MAY 2025 | 28,456 | ||
| MAY 2025 / APR 2025 | -0.1% | |||
| 71: Arts and Entertainment | MAY 2025 | 13,490 | ||
| MAY 2025 / APR 2025 | -3.0% | |||
| 72: Accommodation and Food Services | MAY 2025 | 24,682 | ||
| MAY 2025 / APR 2025 | +0.3% | |||
| 81: Other Services | MAY 2025 | 36,621 | ||
| MAY 2025 / APR 2025 | -1.3% | |||
| Unclassified | MAY 2025 | 12,700 | ||
| MAY 2025 / APR 2025 | -1.7% |
“In other words, the Census Bureau is projecting that 28,303 new business startups with payroll tax liabilities will form within 4 quarters of application from all the business applications filed during May 2025,” according to the Bureau.
The decrease indicates fewer businesses projected compared to April projections. Statistics on actual business formations are only available up to Dec. 2021.
“Given the forward-looking nature of business formations, the Census Bureau can only state actual business formations within 4 quarters up to Dec.2021, and business formations within 8 quarters up to Dec. 2020,” according to the Bureau.
For more information, visit HERE. The June 2025 Business Formation Statistics Report is scheduled for release on July 10, 2025.
View the full schedule HERE.
Image by pressfoto on Freepik.
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