Layoffs Leading to Increased Self-Employment

CIO Magazine points to some interesting data showing that an increasing number of people are turning to self-employment due to layoffs. 

According to the article, survey data from the outplacement firm Challenger, Grey & Christmas shows that 8.7% of the respondents that gained employment in Q2 did so by starting their own business.  This is almost twice the percentage from a year ago.  In the prior quarter 6.4% started their own business.

The article also points to increased listings on Freelancer marketplaces like Elance, which averages 25,000 job posts per month - a 50% increase over last year.

The article points out that self-employment is not easy and provides some good advice:

"if you are going to make that transition [to self employment], you need to have business skills and personality along with it, because without those you are going to strike out."

We are forecasting an increase in self-employment over the next decade, with a lack of corporate jobs being one of the drivers.  See our prior post on this topic for more details.