James Juniper, Bill Mitchell and Jennifer Myers examine whether small businesses in Australia has higher rates of job creation than larger firms. They also consider whether so-called 'industrial relations' factors (wages, workers compensation, superannuation, union membership) retards rates of job creation in Australia. They find that larger firms are more dynamic in terms of job creation and that there is no evidence to suggest that the 'industrial relations' impacts retard job creation. They thus provide a cautionary note on the current political agenda aimed at reducing the security of employment in small business.