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| Unemployed? Try Starting Or Growing Your Own Business |
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| Written by Michael Nelson |
| Friday, 30 January 2009 10:18 |
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I was taking a break from my normal online activities this morning and decided to visit a couple news sites just to see what was going on here in the US and around the world. Well just as I expected, I came across a few headlines talking about the high unemployment rate (over 7%) and reminding us that since the recession started job losses have been large and widespread across all major industries. I will be the first one to agree that the current situation is anything but rosy. I will also be the first one to point out that we maybe need to step out of our comfort zones. I remember reading somewhere on the Net that the current wave of frugality is, in a way, hurting the economy because people are spending way less than they used to. This, in turn, causes businesses to make less money and lay off people. This way of seeing things only looks at part of the picture. While laying people off is one of the first cost-reducing measures, business also look at their operating habits to spot where they can reduces costs and/or be more productive. Being more productive means they will be able to offer their goods and services at lower prices because they're being more competitive. And lower prices are just what their customers will be looking for. Another overlooked aspect of competition is that which can exist within the workforce. The first image that comes to mind when the word competition is mentioned is businesses vying for the same customers, but it can also mean workers vying to get jobs or to keep them. Employees try and bring that little extra to the table to either cut costs or increase revenue, and the businesses' financial structures get more sound as a result. I even read that in one case employees are working for free in a bid to save the business. As much as we're complaining about the unemployment rate here in the United States, ours is one of the lowest of the developed world. In many advanced countries of the European Union, it has been around 8% for quite some time. It's probably time for us to come to terms with the realities of basic economics and realize that we have been enjoying full employment for some time (defined by the economic condition when everyone who wishes to work at the going wage rate for their type of labor is employed) and it might not come back any time soon, as it's the exception rather than the norm. As a final point, I'd like to ask a question. Why is Michigan the hardest hit state in terms of unemployment rates (10%) while Wyoming enjoys the lowest unemployment rate in the country (3%)? The answer lies in the fundamental difference in how income is derived in those two states. Michigan is a manufacturing state, and most of the jobs come from factories and related businesses. Wyoming is a farming state. The farmers there are mostly self-employed and don't rely on someone else to give them a job. So maybe we should draw from that line of thinking and realize that no one is going to hand us our personal bailouts. Self-employment might just be the ticket, though. The most serious financial crisis in 75 years requires us to go back to our roots. As recently as a century or 2 ago, most people were self-employed. We might not have to get back to that point, but everyone should have their personal business, whether or not they derive a full-time income out of it. Wyoming's unemployment performance is made possible by the fact that it's hard to lose your job when you're the boss. Look into your talents and abilities to see if there's a potential money-maker, take advantage of a global economy and the power of the Internet to launch your very own personal venture. It's probably the best time to do that. About the Author: If you've been laid off, make sure you read up on applying for unemployment insurance benefits benefits by visiting my financial blog. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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