Too Many Job-Seekers

According to this report, in the USA, there over five job-seekers for every job opening. This ratio is likely to expand in the coming months. Most job-seekers are deluding themselves if they think they will be getting hired at all.

If these people want to be gainfully employed, they are going to have to employ themselves - either going into business by themselves or joining with others to form businesses. This is going to be a difficult transition for those who choose to undertake it.

Starting a business can be enormously demanding and prone to failure. Those who have been used to working under supervision need to learn self-management skills. They also need to take care of any number of tasks ancillary to producing their main product, such as marketing and bookkeeping. The self-employed often work long hours for little compensation and no fringe benefits.

We believe the forced entry of tens of millions of American workers into self-employment will ultimately lead most of them to earning sub-minimum wage levels. The loss of purchasing power will further depress consumption and the economy as a whole.