10% of downsized rehired, 21% start/aquire new business - of those working

[papau]

I liked the limitation of the statistics reported to those "who found new jobs"......

A Right Management survey of Right Management's outplacement (career transition?) consulting services custumers (more than 14,000 displaced employees from more than 4,900 organizations
throughout North America "who found new jobs") shows that one of 10 employees who were laid off in a downsizing was later rehired by that same employer in 2005.

During 2005, 13% of employees who had previously been laid off were rehired by their former employers, according to a survey last year with the assistance of Right Management's outplacement consulting services. The most recent survey also indicated that entrepreneurship still holds appeal for many laid-off workers; 21% of laid-off employees started new businesses after being laid off last year, the same percentage as did so in 2004. This included 11% who started or acquired businesses, and 10% who started or acquired consulting
practices, the same figures as in 2004.

[Fierce]

1. Well, of those 21% starting new businesses,

about 90% will fail within 5 years. And when they do, they may not be considered "new" unemployed.

[John Q. Citizen]

7. True, and those with failing business may be considered the

newly bankrupt at that point.

[Fierce]

9. Yup.

So many people wait for unemployment to start up a new business, then put all their eggs in one basket.

[napi21]

2. Entrepreneurship is great, but VERY risky!

I'd love to see what % of those new businesses are STILL in business today, and are they making any $$?

[papau]

3. I would also like to see that stat - along with the number that never

found a job, and the number who found jobs paying less that 2/3rds former pay.

[Fierce]

8. I wasn't talking out of my ass up there.

The rule of thumb, accepted by banks and VCs, is that about 90% of all new businesses fail within the first five years.

[papau]

10. Thanks for the info - indeed the reason there is so much small business

hiring is because there is so much small business job loss.

The increase in total employment seems to tract employment at large corporations.

[Ian David]

4. How nice it must be to be "laid-off and re-hired"...

Usually, I'm just laid-off and "served with a restraining order."





(I'm kidding)

[Coyote_Bandit]

5. I'm one of those new businesses

Translation: I was laid-off along with about 30% of my co-workers about three and a half year ago. I'm still looking for employment, sending resumes and doing interviews. I'm well educated and fortunate to pick up some consulting work from time to time. Self-employed. If this were a real business it would have folded at least three years ago. But, hey, it brings in a few bucks....

[madrchsod]

6. i got laid off in the 1980 and started my own business

but had to find another job 9 years later because of health care costs. there is no way i could afford health care payments today even if i were succesfull. we need universal health care like japan`s.

[Coastie for Truth]

11. Form 1099 telecommuters

"11% who started or acquired businesses, and 10% who started or acquired consulting practices"

includes those who have been laid off/early retired - and retained back - without benefits and paid on a "1099".

Same job - 1/3 less "cost" to the employer(fully loaded overhead), less pay (health insurance, 401(k)).