Layoffs

03/10/2025 | 30021pwpadmin |

I am temporarily postponing my next post regarding better understanding your business financial statements to address another important topic — Layoffs.

Per the US Bureau of Labor Statistics, the average annual layoffs and job discharges was 1.9 million from 2000 to 2024. This period included a record 13.5 million job losses in a single month (March 2020) primarily driven by the Covid response.

The table below summarizes almost 10 years of unemployment data. At first glance, it may appear to be a lot of data. Don’t be overwhelmed. Analyze the data in “chunksâ€.  For example, the highest  average annual unemployment rate was 8.1% for 2020. By contrast, the lowest average annual rate was 3.6% in both 2022 and 2023.

April 2020 had the highest single month unemployment rate at 14.8%.  Interestingly, April 2023 had the single lowest monthly unemployment rate at 3.4%.  

Unfortunately, layoffs and unemployment will likely continue just as they have for decades. After internalizing this data, we will each have to decide whether the risks associated with traditional employment are greater than the the risks associated with executing a well defined, business ownership plan.

A blue icon of hands holding a key and headphones.

If you are one of the millions of dedicated, hard working individuals who lose their jobs annually in the US, first take time to acknowledge the disappointment, hurt, surprise, anger, disbelief, betrayal, uncertainty . . . or whatever emotion you feel as a result of this loss. Then redirect the energy associated with those feelings into determining your next professional move.

For me, I’ve been laid off three times throughout my career (more to come on that topic). The first two times, I was re-employed relatively quickly. This time, I’m taking a completely different approach as a business owner.

It’s critical to have a complete understanding of monthly costs when establishing a business. For me, a major expense was the incredibly high cost for health coverage. After my layoff, I could have continued my insurance coverage (medical, dental and vision) through COBRA (or the Consolidated Omnibus Budget Reconciliation Act), but at the at the astronomical monthly rate of $2,400.

Fortunately, I was connected to Health Sharing, and my monthly cost for healthcare coverage dropped by over 70%! Click this link to learn more.