Hey everyone, this is Alan here and today we’re going to take a deeper dive into what it may mean for you when unemployment reached 22 million claims in just one month.
Let’s start from the beginning. In just the last 2 weeks of March 2020, 10 million workers filed jobless claims.
Another week after that? A mind-boggling 6.6 million more people filed for unemployment benefits.
One more week to add to the total, which rounds up to one month and the United States has hit 22 million people filing for unemployment benefits.
As quoted by the Pantheon Macroeconomics Chief Economist Ian Shepherdson: “No words for this”.
And what are some of the recognizable brands with the biggest layoffs or furloughs?
Here’s a shortlist:
- Disney will be placing 43,000 employees on furlough.
- Tesla will furlough all nonessential workers and reduce all employees’ pay by at least 10%.
- JCPenny states that they have started, and will continue to furlough a significant portion of its 85,000 employees.
- Sephora laid off 3,000 employees via a conference call.
- Macy’s placed most of its 125,000 employees on furlough.
- And Cirque du Soleil cancelled all of its upcoming performances and laid off 95% of its staff.
A flood of job seekers hits the market
I think the scarier part about everything is that with mass layoffs, there’s a huge influx of workers into the market.
Typically, if one big company does a mass layoff during a stable economy, it already significantly increases competition between job seekers.
However, if you couple mass layoffs with what the coronavirus has done to negatively affect businesses, then you have a huge double whammy.
You see, laying off a huge number of a company’s staff is clearly not limited to just the known brands.
Most of my business-owner friends are struggling, with many having to significantly reduce their staff.
And some say that if the shutdown goes on for another month or two, their business may never re-open.
But here’s the thing: they know that it is better for the general public’s health to remain closed until we get the “all-clear” about COVID-19.
So if their business hasn’t been adaptable to this unexpected black-swan event, then there’s not much they can do for themselves or their staff right now.
If they shut down and are drowning in debt, they’ll have to resort to looking for a job.
If businesses continue to shut down or freeze hiring, not only will there be a huge supply of job seekers, but there will also be a shortage of jobs, which is just about the worst combination you can hope for if you’re looking for a job.
But I feel for small business owners if they have to do that because the traditional working world, such as a corporate office, is not always welcoming to those who have taken a more entrepreneurial route.
They may not want to take on the risk of somebody who has taken a less traditional route. Or perhaps their skills are just too specific to their small business.
Will small business owners find jobs?
So a question is: are small business owners considered employable?
To me, DEFINITELY.
I believe running your own business, no matter the size, is one of the toughest things anyone can do.
Business owners are those that are natural problem solvers because, well, they have to do it daily in order to survive and thrive.
So if business owners also have to enter the job arena, that only increases the supply of job seekers higher.
What to do if you find yourself unemployed
Since none of us can predict how long the coronavirus will affect our short- to long-term economy, I believe there’s only one thing you can do to take back control where you can.
On top of applying for jobs, you can take this time to try to create a stream of income online.
Everybody is stuck in quarantine and in front of their computers and phones more than ever.
If you have an expertise that can be shared through a webcam, online blog, YouTube video, podcast, or any online channel, now is the time.
Historically, amazing businesses have been built during recessions. I’m not saying you need to work on building a massive game-changing business but keep it simple in trying to start a new income stream.
Perhaps you have expertise playing guitar and have shortcuts. Well, teach it.
Maybe you love cooking. Start a channel, build some followers, and see where it takes you.
If you’ve been waiting for the perfect time to test something like building a side-hustle or a business, now is the time.
There’s an oversupply of job seekers and a shortage of jobs. It may get worst in the coming weeks to months.
Take this unfortunate time and make it work in your favor. Nobody knows what is going to happen next, but I do know one thing: when you take action towards a direction that you have determined to be your path, good things always happen.
Who knows, perhaps you’ll be one of those great business success stories that are born out of recessions.
One of the goals of my website and YouTube channel is to take news and provide my own personal thoughts and opinions on it with the hope that it can enrich your life.
If you love that idea, hit me with a “Like” and “Subscribe” in my video section. Drop a comment and tell me what’s on your mind from recent news and I’ll create video responses to them.
I’ll see you soon!