Friday, January 9, 2009

Job Loss - The Good & The Bad

Headlines blared "worst since 1945" on Jan. 9 after the Bureau of Labor Statistics announced the U.S. economy lost 524,000 jobs in December and 2.6 million for 2008 as a whole. Get a grip, people. We all know things will go continue southbound with more job losses to come as companies either learn to cut costs or go bankrupt. But this is not the time to panick as it does not help us, not one bit.

Plus, I am sick of hearing all these comparisons to some 60 years ago depression or even recent years. The fact is we are threading on unchartered waters and it is all beyond what history can tell us. Heck, logic has long been a casualty in this war.

Now, as we take a closer look at the shocking numbers of job losses, we can understand one thing. The employers are cutting in bulks so as to avoid small dribbles of smaller cuts in the months to follow. If you think about it, this is really a good sign that companies are not waiting around for help but taking actions to prepare for the growing storm. It is therefore unlikely that the job loss numbers get any worse.

And let's not forget, crisis breeds opportunities. Money is scarce. Markets are volatile. Morale is harder to boost in an atmosphere of anxiety. The world is different and continues to change beyond anyone's comprehension. This is the time people will make it or break it. Taking away your job will leave you with more time to study the current environment and think about what to do.

What to do when capital has dried up all over and banks are not lending except to special clients? You need to recognize that the key players are those with the fundings to take advantage of the situation. For those non-key players, it is imprudent they learn to follow the key lead.

Just remember, a job will never make you rich. But opportunities will.

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