The numbers are horrible.
The unemployment rate from April 2020 numbers released yesterday show that the jobs lost in the U.S. has reached record levels.
At present, the federal government is reporting that the U.S. unemployment rate is now at 14.7%. This represents the greatest monthly decline in employment in over 80 years. And unemployment has hit a rate not seen in over 70 years.
Almost every sector of the economy has been affected, with some sectors especially hard hit, such as travel, hospitality and entertainment. In healthcare, hospitals have cut 135,000 jobs in the past month, and consumer spending on healthcare services has dropped 18% in the first quarter of 2020. In-person visits to doctors and dentists have plummeted by over 25%.
According to statistics just reported, over 20 million Americans went from having jobs to being unemployed in just the past month of April. That is in addition to almost 900,000 Americans who lost jobs in March.
So, are there any silver linings to the destruction imposed on the American economy by COVID-19 and the ensuing lockdowns of business?
Well, in today’s Wall Street Journal, there is an interesting article that makes the case that as the economy gets re-started, there could actually be business opportunities for innovative entrepreneurs. The article, entitled “For the Entrepreneurial Mind, There May Be Silver Linings,” profiles several successful business entrepreneurs who started business ventures during challenging and difficult times in the economy and have seen those businesses flourish.
For example, Jake Schwartz graduated from business school in 2008 during the last big recession. After working in as an SAT tutor and a temp in a law firm, in 2010 he started a business, General Assembly, that helps people develop business skills (e.g., computer coding, digital marketing). Eight years later, he sold that business he started as a young entrepreneur for over $400 million.
One lesson to be learned from past bad times in the economy is this–if you are a entrepreneur or have an entrepreneurial vision, do not wait to get started. And don’t just rely on a big company to provide you with job security–if this time in our country demonstrates anything, it is that job security is an illusion.
If you have a dream of starting your own business, now is the time to make that dream come true.
As I say on the home page of this website: “The best time to plant a tree was 20 years ago. The second best time is now.”