Starting Fresh – When the HR Rep Doesn’t Call

One of things you never will hear crossing a politicians lips when talking about unemployment – is the fact that the 10% unemployment numbers include 5 – 7  million of the unemployed are folks who have college degrees, and would be classified as white collar workers. This situation started shortly after the Dot Com bust, where previously highly paid professional people with significant skill sets were thrown out of work, or forced into underemployment by cascading companies.

During the Bushit Administration, these jobs were heavily “outsourced” to China and India. Another “brilliant” idea when you consider those 160,000 programmers in China attempting to Hack into Google, our military systems, and cripple our grids conducting 3 – 5 million attacks a day…

Were trained largely on corporate America’s dime.

Finding a Job by Starting a Business

Last year, more laid-off managers and executives grew tired of waiting for human resources departments to call them back. They took matters into their own hands by starting companies.

Challenger, Gray & Christmas, the outplacement firm, regularly keeps track of 3,000 high-level job seekers in a range of industries. Last year, 8.6 percent of these decided to take the start-up route, compared with 5.1 percent in 2008.

The biggest surge was in the third quarter. The hope is that this momentum “will carry into 2010, since new business development is considered critical to a sustainable recovery,” Challenger stated.

After seven years, only about a third of start-ups are still in business, according to a study in the Monthly Labor Review. Most of these companies fail within in the first few years. So in four years or so, it would be interesting to see how many of these entrepreneurs wish they had waited for that H.R. person to call back.

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2 Responses

  1. Starting a business is relatively easy, and you don’t have to be entrepreneurial to do so. But what it takes to rise in corporations is not the same as what it takes to turn the corner to profitability in a business.

    I’m thinking about the dot.com era of the latter half of the nineties. What cautionary tale about start ups on steroids, the hyper-IPO period and the “day-trader” phenomenon. The capital markets industry became bloated with the promise of quick wealth, and too much money chase too few real good deals. And everyone operated under the concept of OPM, Other People’s Money.

    The only way for established companies with 80,000 employees to seem interesting and relevant in that environment was to squeeze profitability out of their structure, leading to precisely the scenario you described.

    It’s been like a death spiral.

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