Mass layoffs will result in surge in business startups, new opportunities - Jacksonville Business Journal

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Mass layoffs will result in a surge in business startups — again

And now, the layoffs are beginning to seep through the banking industry as blue-chip financial giants such as Goldman Sachs , Credit Suisse , Bank of New York Mellon and Morgan Stanley draw plans to shed some 15,000-plus workers in the next few weeks. Without a doubt, others will follow in the banking industry in the coming weeks.

Mass layoffs are not new. The economy has experienced it before, and depending on where we live, the economic effect on municipalities and states have varied dramatically. When the housing market in communities such as Las Vegas, Phoenix and greater Miami got hammered during the Great Recession,So now, if we are staring at a deep recession in the coming months, what can we expect in macro terms?

What we know for certain are two things – the Federal Reserve will continue to raise rates but perhaps at a slower clip. And more importantly, as hundreds of thousands of freshly laid-off workers look for jobs, some will give up looking and start their own businesses.the number of new businesses created hovered around 670,000

. After the bust, the number fell to about 650,000. But by 2006, business startups rose to 715,000. Then came the Great Recession a couple of years later, which dropped the business formation number down to a little over 550,000 by 2010. Ever since 2010, the number has been going up and

 

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