The recession is hitting the self-employed hard, new numbers from the Department of Labor reveal, Bloomberg reports. Last month, 8.68 million people worked for themselves, the fewest since January eight years ago. Those numbers fell a whopping 13 percent from December 2006 numbers of 9.98 million.
Some experts point to a lack of credit as one reason small businesses are failing. Scott Shane, a professor of economics at Case Western Reserve University in Cleveland, said that "the failure rate of self-employment picked up a lot during the recession. ... I think the indications are not good at all.”
“This is not a good environment for starting a business,” said Jonathan Basile, an economist at Credit Suisse. “Look at the headwinds the household sector faces. These are headwinds that are going to be in place for some time.”
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment