Job satisfaction, or the lack thereof, is causing a shift in the workforce. Over half of employees in the United States are “quiet quitting” and actively looking for other jobs.
In part, this is driving the number of self-employed individuals to rise. Growth in the self-employment rate for females is outpacing that of males. Female business owners account for double the number of new businesses open less than two-years when compared with males. Female business owners are seeking credit but across most industries receive less funding. Male and Female business owners have comparable credit risk profiles and utilize a similar mix of commercial credit products, yet male business owners, on average, receive higher credit funding amounts. Even in most industries where new credit originations skew to one gender, male business owners are granted higher credit funding amounts. This disparity in commercial credit lending has an adverse affect on female business owners and forces them to pursue other financing options.
What I am watching:
As an impending recession approaches, the labor market is expected to constrict which will reduce options for employees. Job vacancies are likely to be limited, quits will decline and self employment will slow as individuals seek the security of more traditional jobs. While people may not take the leap to start their own business as much, it will be interesting to see if the vast number of new businesses created over the past couple of years can survive an economic downturn.
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