Money Magazine is currently running a poll seeking responses to a simple question, “Do you love your job?” The multiple choice answers reveal an interesting result, especially when you consider the percentages of the votes tallied so far:
- Yes, it’s interesting and pays well. (38%)
- Not really, but I’m glad I’ve got a job. (33%)
- No, I’d switch careers in a second. (16%)
- I wish I did. I’m unemployed. (14%)https://iwealthsystems.wpengine.com/wp-admin/post.php?post=8634&action=edit
In this group of 34,091 readers of Money Magazine to date, the unemployment rate is 14%. The national rate is currently 9.1%, which reportedly consists of 8.3% of women and 9.3% of men over the age of 16. (Source: Bureau of Labor Statistics).
Why is job growth lagging?
One reason for the jobless recovery is “the remarkable story of continuously rising U.S. worker productivity, “says. The pattern was a godsend during the 2007-2009 recession, because it allowed businesses to “maintain output despite layoffs.” The “downside” of higher productivity is that it has “delayed job creation,” but don’t worry — after the “longest period of ‘rightsizing’ in decades,” most companies can’t get any leaner, so they’ll have to start hiring as soon as sales pick up. (Source: TheWeek.com)
The fact is the U.S. needs to add nearly 17 million jobs to get back on track. That total number would equate to 280,000 each month for the next five years!
Even if you are employed, it’s still a difficult situation. Wages aren’t rising, but the cost of living is.
As Phil Izzo wrote in The Wall Street Journal, “If prices are going up but workers aren’t getting paid more, it spells good news for companies who can keep labor costs low, but suggests continued struggles for consumers.”
That’s why the U.S. needs you — entrepreneurs starting new small businesses.
Historically, small business provides the majority of all jobs in the U.S. In fact, small business has created about two of every three net new jobs since at least the early 1970s. Obviously, this number is not the same year to year. The proportion changes with the business cycle.
Large businesses tend to have much larger swings in employment over the business cycle than smaller firms. Therefore, during economic expansions (good times), small business’s share of net new jobs falls relatively; during economically difficult times, small business’s share of net new jobs grows relatively.
The important point is not the number of jobs small businesses creates. It’s the number of net new jobs, meaning the number of jobs created minus the number of jobs lost.
So if small business generally adds two thirds of net new jobs, we, as entrepreneurs should be able to add 11,390,000 of those 17 million jobs needed!
Whether you hire employees, contract more services or choose to outsource tasks, you’re helping America’s economy grow.
Let’s pull together to get the economy back on its feet!
Starting a business? Ready to grow your business? We’re here to help.
What questions do you have? Where are the roadblocks for you? What do you need help with?