The rate of unemployment is one of the key factors that determine the state of the country’s economy. With the current rate nearly reaching 10%, it can be easily said that the country and even the rest of the world is still struggling with recession. Even though everyone is finding ways to deal with recession effectively, it’s still a long road ahead before everyone reaches full recovery.
In a personal level, unemployment is a huge blow to personal finances. Many rely on their jobs as their source of funds to pay for essential services and purchases of very important products. Without a source of income, some things cannot be bought or enjoyed. That is why knowing the news that you’ll be terminated because of recession is scary. Even though you have some savings, this might not be enough to pay for the daily expenses until recession is over.
On the other hand, there are also some good news that could come from unemployment. This might sound weird but there are actually things that happen during the unemployment phase that could be beneficial for everyone.
Resetting Labor Sources
One of the key benefits of unemployment is the redistribution of skills among companies. Businesses who opted to terminate some employees because of recession will most likely hire new personalities for work once recession is over. Because there is limited vacancy, businesses and companies will be able to choose the best candidate possible for the job.
Recession has created labor surplus which means business will not end up choosing a less qualified candidate. This might seem unfair for those who do not have the experience and qualification. But if you take a look at this situation from the perspective of businesses, recession will help them choose candidates that can help them boost their business.
Chance of Learning New Skills
Unemployment is also paving the way for those who are unable to find a job to learn new skills while seeking new jobs. Many job seekers are unable to land any job during recession because their skills are not enough to convince businesses that they are the best candidate for the position. This means they should get back to school or seek additional training.
There’s no use seeking a job in vacancies that demands more from their candidates. Instead of looking for a job, learning as a preparation when the job vacancies increase is a good option.
Rise of Self Employed Individuals
Perhaps the biggest advantage recession could give to those who are unemployed is the idea of self employment. The logic is very simple: since no one will hire you because of limited vacancy, why not hire yourself? Starting a small business is not that challenging.
All you need is a creative use of your skills and simple networking in order to attract clients. Many individuals are immediately reaping the fruits of self employment. Fresh college graduates can even consider starting a small business rather than aggressively looking for a career which is very difficult nowadays because of recession.