If you spend your day on Twitter, it may be hard to believe, but there is a strong case to be made for optimism in America.
The recent consumer price index showed that inflation is declining. This will soften the Federal Reserve Bank’s approach to raising interest rates, which causes companies to cut costs and conduct layoffs. The stock market rallied on the news, bringing some good news to those who hold a 401(k) plan, college fund for their children or IRA. It’s important for the overall mental health of the nation to see that there is light at the end of the tunnel and, eventually, the challenging economy will improve and instead of layoffs, Americans will see a return to aggressive hiring.
The epic blow-up of one of the largest crypto exchanges, FTX, was a much-needed wake-up call for investors to be vigilant. Although people will lose money in this fiasco, the cautionary tale of FTX will urge people to be more cautious and thoughtful about their investments. They’ll now know not to succumb to FOMO or jump on the bandwagon of meme stocks or dodgy crypto pumps and dumps.
Additionally, job hunters will conduct considerably more due diligence on the company and its leadership team before accepting an offer with a marquee brand name. They will ask direct and tough questions to ensure that the company follows all the rules, has a strong balance sheet and is in a good financial position.
China is relaxing its strict zero-Covid policy. Its efforts are now directed toward the economy and producing goods, which will help ameliorate the supply chain disruption that has been driving up prices and boosting inflation.
Gen-Z To The Rescue
The data for the November 8 midterm elections shows young adults voted en masse. In the past, younger people were relatively apathetic toward politics and voting. Now, this cohort is all-in on change and becoming active participants in the process and in wanting to be heard.
Gen-Z has also become outspoken about what they will and will not tolerate in the workplace. They are a generation that gives more weight to a company’s social stance and politics above all other job criteria. Unlike the generations before, they prioritize a healthy work-life balance and refuse to work themselves to death under the thumb of toxic bosses.
Closing The Gaps
New York recently passed a new law mandating the inclusion of salary ranges on job descriptions. California Governor Gavin Newsom signed a similar bill, following in the footsteps of Colorado and Washington state, where salary transparency laws are currently in effect.
Pay transparency legislation is a substantial win for employees, as it lifts the veil of secrecy that has protected companies for so long. Bringing this information to light helps normalize discussions around money. Salary disclosures mitigate pay disparities that primarily affect women and other underserved groups. Job seekers, current employees of a company and workers at rival firms will know how much a role pays. Armed with this data, people in the workforce can advocate for fair pay and the compensation they deserve.
Additionally, job hunters won’t be forced to endure months of interviewing, only to later find out that the compensation offered is less than they are earning now. Knowing the salary bands upfront will save companies and job seekers time and energy.
Economic Downturns Create Opportunities
The U.S. economy swings like a pendulum in boom-and-bust cycles. When the economy craters, it creates new opportunities for budding business owners to solve new problems. Historically, many successful, well-known companies were started during economic downturns.
Now-Famous Companies That Started In A Recession
- Hewlett-Packard (1937-1938 Recession)
- Hyatt Hotels (1957-1958 Recession)
- Microsoft (1973-1975 Recession)
- Electronic Arts (1981-1982 Recession)
- Mailchimp (2001 & 2009 Recession)
- Uber (2007-2009 Recession)
- Airbnb (2007-2009 Recession)
- Slack (2007-2009 Recession)
- Warby Parker (2007-2009 Recession)
- Venmo (2007-2009 Recession)
During economically challenging times, people lose their jobs. With a lack of available options, a laid-off worker who harbors dreams of being an entrepreneur now doesn’t have any excuses to wait any longer. Moreover, as other people are downsized and out of work, you have a larger pool of talent you are able to recruit from for your emerging enterprise.