The Do-It-Yourself Recovery. Is self-employment propping up the economy?
It’s being dubbed the “Do-It-Yourself Recovery”. Across Canada, every media outlet is headlining the latest unemployment figures released yesterday showing a trend that I would suspect is happening with just as much fervor across the U.S.
It’s self-employment and it appears to be propping up the economy.
Here in Canada, the figures for April defied all forecasts that predicted another 50,000 jobs would be lost. Instead, something entirely different happened. There was a gain of 35,900 positions last month keeping the national unemployment rate from rising above its current level of 8 percent. (For those of you in the U.S., where the population is 10 times the size of Canada, multiply those numbers by 10 for a comparable figure — i.e. the 539,000 jobs last month in the U.S.)
But here’s the thing. Statistics Canada noted that the net increase was driven exclusively by a rise in self-employment, and as the Wall Street Journal reported, this is “a somewhat slippery category that cautions against reading too much into the report.”
The numbers signal that many have given up entirely on finding work as a salaried employee in a crushing job market. Others are defiantly taking charge of their own destiny, choosing to never again put themselves in the position of their fate being decided by some VP in a corner office.
Still, I wonder what the other numbers are – the numbers representing the income self-employed people are now living on. No question, some will be flourishing, embracing a new-found freedom and reaping the rewards, financial and otherwise. However, I expect there are many more starting out in fledgling enterprises that are scraping by with about as much as they’d be receiving on UI, or less. Or even drawing on savings to finance their self-employment.
This gives an entirely different spin to the story.
Please don’t misunderstand, I don’t in any way cast a negative light on anyone starting their own business. I think it’s an incredible testament to spirit and initiative and I wish anyone starting out the success they’re hoping for.
I thought about it seriously when I lost my job 6 months ago. As a writer in the ad industry, freelance is a familiar option for those between full-time gigs, and many choose it exclusively because of the freedom it offers. It also demands an iron financial stomach, able to withstand feast and famine, not always in equal measure. And I admit I’m lacking the courage and temperament to brave that kind of uncertainty, especially as a single mom. Plus, I did it back when I was a journalist when my children were young, and a freelance journalist’s income is, in a word, pathetic. So I have a lot of respect for anyone setting out on their own.
But back to the numbers. If all those who have traded salaried positions for self-employment reached or exceeded their level of previous income, this is fantastic news. Over-the-top good news. We’d be getting a work force of self-satisfied and accomplished innovators. That would be good for the world.
But if the financial criminals who brought the economy to its knees have now created a new sub-economy of self-employed people running shoe-string endeavors scraping by from one month to the next, then that’s not good news. It means they won in the end by having taken the money and run – and keeping it from those doing real work.
Now, if you are someone who is making it work, and have successfully turned your back on working for the man, I know there would be lots here who would love to hear how it’s going for you.
Share your story. Tell us what’s worked, what hasn’t. Tell us if you’re making the same kind of income as before, and if not, how you’re handling it. One thing about this recession: it’s brought the unemployed, the self-employed, and the under-employed out of the closet and into a place we can learn from one another.
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Andrew Hewitt said:
May 09, 09 at 6:48 amSince I have no idea when I will be going back to work, I decided to take a Real Estate brokers class. I now have my sellers license and am working part time on apartment rentals until I get the experience to sell. My new goal is to go back to work and build up a client base part time and by June 1 2010 not need to work for someone else but to work for myself full time.
Lou said:
May 09, 09 at 7:12 amWell I have been “unemployed” since June 2008. I did not see anything coming anytime soon, so in Nov I started a consulting company, trying to help the companies that were reducing in keep some level of support with out all the burden cost. It started off ok, but EVERYONE is holding back. I think this will be a new wave and data is supporting that. I even see a push to bartering as we continue this path…That will screw the govt even more as they will be no exchange of money, thus no taxes .. They better wake up soon,, or the congressman may actually start working for us
brian botkiller said:
May 09, 09 at 9:13 amI’ve been self employed for over two years now, I was essentially thrown into it because I went into a contract situation that was supposed to turn into employment, and never did. I have to say that I love the ability to do what I want, when I want. I really HATE, however, the treatment that the average business owner gets in America. The amount of tax poured onto a small business owner, as well as the treatment you get from many other businesses (as if you should just always be with a huge corporation), drives me insane.
I recently lost my two biggest clients, and I’m scrambling a lot. I have some clients, but the work is not nearly consistent enough to keep a steady flow of money. I work everyday, looking for leads and pushing to get new clients, but it’s quite hard right now, as everyone is giving me the “maybe when the economy is better”, line. I can’t really wait for the economy to get better, though.
In the long run, going back to a 9 to 5 job literally makes me sick to my stomach, so I have to make this work either way. The important thing is to stay really focused and determined, and to push everyday.
john said:
May 10, 09 at 6:30 pmI don’t know about propping up the entire economy…but it sure as hell is propping me up! And even if i’m making less now…I feel more like i’m in control of my own destiny. To me, that’s worth more than a bigger corporate salary. Of course if my freelance work dries up in six month I could be singing a much different toon
PW said:
May 10, 09 at 8:41 pmHi FFN - I’ve been self-employed or working “on contract” for a very long time. I think it’s been about six years until I took up my last position as a “full-time employee” then I got zipped and “I’m self-employed” again. Honestly it comes down to this, one day you’re a full-time employee, then you get fired/laid off/downsized/outplaced or whatever and congratulations, you’re “self-employed” again. Sometimes that means you’re out pitching to prospective clients or you’re hunting for a possible gig or you’re simply in front of the computer or on the telephone looking for work. After all, as a self-employed person you don’t want to be “sitting on the bench too long”. And if you’re actually working on a straight contract where you bill and are paid for the hours that you work with no deductions, then that “work’ does not count towards the number of eligible hours for unemployment benefits in Canada. I’ve had a few of those and found out the hard way. I’ve also had contracts where I was effectively treated the same as a “full-time” employee with benefits and deductions however I also had an “end-date” where if the employer didn’t extend the term of the contract or hire me as a “regular employee”, I’d be out looking for the next gig, full-time or contract. Either way, I’d be “self-employed” again. I’ve been through the “ups and downs” so many times, that I’m largely able to shake off the stress and uncertainty. Perhaps I’ve just become numb to it all. I don’t have an iron financial stomach but then again, I have my wife, who has been working full-time for the time that I’ve been self-employed. If it were just me, I’d be really scared. Because if you can’t bring in the next contract, or have unemployment benefits, such as they are, then you have no money. Period. You now have to cash-in any retirement savings that you might have. so far, I’ve been fortunate and have narrowly escaped that option for now. And as Brian Botkiller notes, you have to “…stay really focused and determined, and to push everyday.” You’re always focused on finding the next contract. I’ve had two different, very promising possibilities suddenly disappear because of the economy. So what do you do? You suck it up and press on, the next telephone call out might be your next self-employed contract. It only counts as a “job” if someone’s paying you.
Karol said:
May 11, 09 at 1:25 pmAt one point my husband and I owned a little smoked Barbeque place. It was fine but eventually, it didn’t pan out. We put a lot of money into it but with the economy starting to wither, so did the sales. We eventually had to call it quits. i sold it to a man who in turn made it his own. He was in the right county, at the right time, and was well known here so he made it work. Having a buisness or being self-employed is risky but sometimes you just have to take the chance. Of course between the taxes and footing the bill for everything, sometimes is surmountable in fees that when you first start out, can be overwhelming. I didn’t mind it at the time. It was soomething I enjoyed. If you love something like that or anything you enjoy, than it really doesn’t seem like work at all. It beats having to work on someone else’s schedule. Of course, there are pros and cons to any business venture. Mainly, timing, money, time and effort and of course, what is in demand at the time.
Work From Home said:
May 12, 09 at 5:03 amI am one of the millions working from home in the network marketing industry. Love the lifestyle, the freedom and the income that makes it all possible.
As an accountant (CPA) in my former life I analyzed many different business opportunities and I can honestly say that the company I work with now provide the average person’s best chance to earn a six figure income.
My advice is to find a well established company, with world class products and a fair to generous compensation plan. Then approach it as a job you love doing, with passion and a good work ethic. If you help enough people get what they want, you will get everything you want.
Tina said:
May 27, 09 at 11:25 amWhere’s FFN??? This was the last thing she posted and there’s been nothing else on here or Twitter for weeks. Very, very odd.
PW said:
May 27, 09 at 8:49 pmHi Tina,
I’ve been wondering the same thing. I’ve checked this blog regularly (like everyday) and no FFN. So I don’t know. But for the sake of nothing else better to do, let’s do a Top 5 Reasons Why FFN is “missing”:
5. Stuck on the TTC subway
4. She found herself
3. Interviewing long list of prospective tenants
2. Too busy at work
1. Abducted by aliens
Tina said:
May 28, 09 at 6:44 amPW: I like your list…better then anything I was thinking of!
MT said:
May 28, 09 at 1:11 pmFFN where are you! We need more posts already. Tell us you’ll be back soon! Everyone, I’m VERY happy to announce that I recently enrolled in elearning courses to better my chances at getting a job. Cross your fingers and hope it works.
Tina said:
May 29, 09 at 5:04 amCongrats MT! That’s a great use of your time! Good Luck!
MT said:
May 29, 09 at 7:44 amTina you just made my day! haha I needed a boost today to just get out of bed, and after reading your post I decided to sign up for another set of courses!
Tina said:
May 29, 09 at 9:36 amGlad I could help! What courses are you taking? I’ve considered taking Spanish as I believe it could help everyone these days.
MT said:
Jun 01, 09 at 9:40 amwell with NEF University (part of the national education foundation) you can take a bundle of courses right now on promotion for $25- So I’m taking a bundle of IT courses- but spanish is an excellent idea, I also want to find some place online where I can learn French for cheap!
Mary T. said:
Jun 02, 09 at 12:16 pmI just Tweeted that my unemployment compensation decision is being delayed up to 8 weeks (they tell me) because it takes that long to figure out if I deserve unemployment while I am freelancing at about 1/8 my previous salary. You just can’t win.
PW said:
Jun 02, 09 at 5:20 pmI’m not sure what’s happened to FFN but whatever it is or whatever has happened, I’m worried.
Survive Unemployment said:
Jun 03, 09 at 7:29 amThis is more than a recession. It is transformative and in the long-term people will be more independent because of it.
I wrote a little post on easy-to-start, low-cost businesses that the unemployed can start if anyone’s interested. Please feel free to share your own ideas in the comments. Many heads are better than one.
http://www.surviveunemployment.com/unemployment-business-ideas
Good luck!
Tina said:
Jun 04, 09 at 12:08 pmPW: I agree. I just sent an email to her. Unfortunately her domain is registered by proxy so only the hosting company is listed. If anyone hear’s anything, please let the rest of us know.
Thanks,
skawiseerhawl said:
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computertooslow said:
Jun 10, 09 at 3:32 amI always looking around the ways to make some cash through self employment.
Business Mess said:
Jun 10, 09 at 3:36 amI think the best way is to learn by your self and get experience. Then apply what you learned to make money. Better than 9-5 job.
SagePage said:
Jun 10, 09 at 10:08 amWhere’s FFN?
Tina said:
Jun 12, 09 at 4:27 amFFN Update: I did get an email back from FFN. As life sometimes does, things just got super-busy for her, but she’s fine. I told her we were worried that some Craigs List whacko made her a headline! Anyway, I got her email the other day. Sorry for the delay in posting…I’ve been recuperating from some minor surgery and the pain meds have kept me kind of loopy.
I think she was touched by how concerned we were. It defies the myths nay-sayers espouse regarding online communities. “It’s anonymous…no one really cares…people are fake…”. I think FFN did a great job building a small network of people committed to sharing stories and advice to make it through these extraordinary times.
Hope everyone is doing well. Any updates on jobs offers, etc?
~Tina
PW said:
Jun 12, 09 at 8:48 pmHi Tina - thank you. FFN…grrrr. I was really worried. I even did a search on the major Toronto print dailies looking for “accident reports”. I was also worried about the dog. As in what if FFN was in an accident, who is looking after the dog? I’m not sure whether I’ll make it back out this summer but if I do FFN, you owe me a beer but I’ll buy you dinner.
Tina said:
Jun 13, 09 at 7:54 amPW: Just “A beer”??? You’re too easy! Who gets by with one beer?
PW said:
Jun 13, 09 at 2:38 pmHi Tina, You’re right of course but (1) we’re unemployed so it’s one good beer and (2) there’s wine and life’s too short to drink “plonk” so it’s really good wine. Cheers Tina and FFN.
Typing Jobs At Home said:
Jun 17, 09 at 1:00 pmGreat post.
See… The currently economy actually did me a huge favor. I actually got laid off 4 months ago and it helped me to open my eyes.
Instead of just sitting at home doing nothing… I decided to take control of my own destiny by creating websites online. This was a hobby while i was working my dead end job but, since i got laid off.
I am able to focus more this and have been doing well every since.
karol said:
Jun 19, 09 at 2:20 pmI took a job I couldn’t do. Tried but realized that I just couldn’t sacrafice my dignity, my core, anymore, and quit.
The economy had already affected many things in my life and I wasn’t about to let it take anymore. so I am back to looking for work that I am compatable with and one I can feel some sort of accomplishment and self-satisfaction. I tried to settle for the first thing that came a long and felt lost and inadequit. Now I know there are some things I can do and some things I can’t. But I won’t make that mistake again, if I can help it. So I am back to looking for work that I know I can do. Try and if you don’t succeed, try again….
Scrapbook Ideas said:
Jun 25, 09 at 10:25 pmI am lucky enough to have a part time job, but it doesn’t exactly pay all of my bills. So in my spare time, I started up my own business online. I don’t depend on it as a main source of income, because I’m not very experienced and anything could happen. But it has helped me. I’m not sure if that is propping up american unemployment. But it sure is helping me.
Martin Voelk said:
Jun 27, 09 at 1:31 pmIn our company, we have 75% freelancers and the future seems to be in freelancing. Companies can’t afford to keep people of payroll full time, especially not in economic turmoil.
Tim Evans said:
Jun 27, 09 at 1:34 pmEven though I am a highly skilled Cisco Trainer, I lost my permanent job last year. Luckily enough I am getting enough work through various clients as a contractor now though. The UK seems to been hit much harder than the rest of Europe.
Emma Miller said:
Jun 27, 09 at 1:37 pmI lost my job in december 2008. Only just now, 6 months later, I was able to secure a new full time permanent role. The last 6 months were a real struggle and jumping from small contracts to even smaller contracts.
Natalia said:
Jun 29, 09 at 2:16 pmWith such a high unemployment rate, deciding to get self-employed seems to be a feasible solution to the unemployment problem. For those people who don’t know where to start and want to know more about where on the Internet to go, I suggest going to the Entrepreneurship section of FiredNetwork.com, it has very useful resources: http://firednetwork.com/entrepreneurship.php
jawatan kosong said:
Jul 03, 09 at 12:54 amAs long as you know what kind of business to start, see the market, do a research, better you start do your own business.
Seattle movers said:
Jul 03, 09 at 12:58 pmNice post, very interesting. Rgds. PsMoving.com
PW said:
Jul 15, 09 at 10:46 pmHi DS - check your gmail account.
b2c said:
Jul 15, 09 at 11:40 pmWhy so many people reply you blog?
Tina said:
Jul 22, 09 at 2:28 pmB2C: People reply to this blog because it was a great source of comfort for many of us, out of work, unexpectedly. Also, FFN kept this a safe place where we could talk…no pyramid schemes, not looking for anything. Just a safe place to share experiences.
FFN: We miss you. Hope all is well.
~Tina
PW said:
Jul 24, 09 at 9:19 pmHi Tina,
It’s been an awful long time and I haven’t heard a peep from FFN. I did receive a note in early June and replied to it but I don’t think she’s picked up my reply. Miss you FFN. My “kids” are well, I hope that yours are too.
bird feeders said:
Aug 05, 09 at 11:48 amI think there are lots of people doing this to fund themselves - lots of small self employed professionals, not making a massive amount but just getting some extra cash and trying to build a longer term business/lifestyle - getting a full time job is just so difficult.
SF said:
Aug 06, 09 at 12:54 amb2c: Because, it is valuable blog, and people like to read interesting articles.
Light Rucksacks said:
Aug 12, 09 at 5:23 amPeople are definitely taking more decisive action these days, and realising there is more to life than a 9-5. There’s a lot more government support for this though so it works both ways
Gail Grannum said:
Aug 26, 09 at 6:44 pmThe effect of modern Technology has allowed many Solopreneurs to start their own businesses. Social Media and the Internet are great tools to assist in building strong, small business. These smaller niche businesses build efficient smart brands providing services and information to the global internet community.
Amy said:
Sep 01, 09 at 5:53 amI’d say definitely - self employed people are more secure once they are successful because they cant be fired so in my experience they spend more freely.
We are totally a pillar when it comes to the economy.
Free health tips said:
Sep 07, 09 at 12:40 pmYes self employment is growing day by day.
GregS said:
Sep 09, 09 at 7:48 amIt would be great if the economic problems brought on by the greed of the big corporate banks had a positive outcome. I think a return to an economy where a decent proportion of the workforce had their own trade/small business would be a very positive thing.
Price Comparison said:
Sep 15, 09 at 5:30 amAs others have said it’s good to see so many people taking control of the situation themselves and taking a shot at self-employment. Let’s hope it works out for them.
Dont Take Loans! said:
Sep 19, 09 at 5:25 pmAlso self employment by the fact its 1am and I’m working at home on my laptop (on a Saturday night
). I am in the UK but of course this is world wide problem now, but yes its the average man working away as always that will sort this out 
Take control !
Pete
Janitorial Services said:
Sep 22, 09 at 10:14 amThree cheers for self-employment! I admire those who take matters into their own hands and don’t let themselves wallow in their own misery.
transfer smart said:
Oct 22, 09 at 11:37 pmI agree!!! In able to survive this phenomenal global recession we should do our own initiatives. Do-it-by yourself.transfer smart can give you more ideas on to survive in this financial crisis. Don’t lose hope,we can do it.
Buy UGG Boots said:
Oct 31, 09 at 10:04 pmI agree!!! In able to survive this phenomenal global recession we should do our own initiatives. Do-it-by yourself.transfer smart can give you more ideas on to survive in this financial crisis. Don’t lose hope,we can do it.
transfer smart said:
Nov 05, 09 at 1:30 amSince I have no idea when I will be going back to work, I decided to take a Real Estate brokers class. I now have my sellers license and am working part time in transfer smart until I get the experience to sell. My new goal is to go back to work and build up a client base part time and by June 1 2010 not need to work for someone else but to work for myself full time.
Jon Richards said:
Nov 05, 09 at 10:18 amself employed is the way forward, pick your hours, pick your wage and no one to report to. If you can start an online business then you can save on costs.
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Free CNA Training said:
Nov 06, 09 at 3:45 pmI am lucky enough to have a part time job, but it doesn’t exactly pay all of my bills. So in my spare time, I started up my own business online. I don’t depend on it as a main source of income, because I’m not very experienced and anything could happen. But it has helped me. I’m not sure if that is propping up american unemployment. But it sure is helping me.
Daniel said:
Nov 09, 09 at 11:23 pmI’ve been unemployed since I graduated in May. As much as I would love to have a full time job it’s given me the opportunity to start my own business doing what I love and also help out other unemployed people!!
Check out my new company at http://www.resumefacelift.com and get the edge over all those other job seekers!!
Mary McCarthy said:
Nov 12, 09 at 9:14 pmI am outraged that we have not gained the needed momentum around the unemployment situation. Why have we not mobilized? Why have we not created the publicity needed to get the attention that the situation deserves. I have created a website to start the movement…visit http://www.VoiceOfUnemployment.com. Every car in America should bear a magnetic bumper sticker that states the outrage on the unemployment situation in the same vein that car ribbons bear the testimony of drivers relative to breast cancer research and support for our troops….visit the site, get a robbon and start the movement!!
snap401k said:
Nov 15, 09 at 10:12 amsmall business 401k, self employed retirement plans, small business retirement plans and QuickBooks 401k plans are good financial plans.
Teaching Job said:
Nov 16, 09 at 2:16 pmBest way to get experience is to just finally do it - go out on your own and see what happens. Worst case scenario is that you find out you can’t and you have to go find another job again. There are always jobs available to make “ends-meat”, but finding your passion and actually going the self-employment route is the hardest part. Worth a try, at least once, right?
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Unemployment Rate said:
Dec 10, 09 at 10:03 amThree cheers for self-employment! I admire those who take matters into their own hands and don’t let themselves wallow in their own misery.
zygor guide reviews said:
Dec 14, 09 at 8:38 pmIt’s self-employment and it appears to be propping up the economy. It may become true.
Money Compare said:
Dec 15, 09 at 5:26 pmSmall businesses are the growth engine in any economy, even though huge corporations receive much more media attention when they announce new jobs. With that said, it really shouldn’t be surprising that self-employed people are propping up the economy.
However, as has been seen in the past, when government spending is pulled back on major programs and departments are scaled down in order to address national debt, self-employed service providers (such as construction contractors) are often hit hardest, which means the economic engines splutters to a halt.
Charles brooks said:
Dec 18, 09 at 4:34 amOften we forget the little guy, the SMB, in our discussions of the comings and goings of the Internet marketing industry. Sure there are times like this when a report surfaces talking about their issues and concerns but, for the most part, we like to talk about big brands and how they do the Internet marketing thing well or not so well.
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Hello Kitty store said:
Dec 19, 09 at 1:06 amIt means they won in the end by having taken the money and run – and keeping it from those doing real work.
henrylow said:
Dec 19, 09 at 2:31 amThe Center for Media Research has released a study by Vertical Response that shows just where many of these ‘Main Street’ players are going with their online dollars. The big winners: e-mail and social media. With only 3.8% of small business folks NOT planning on using e-mail marketing and with social media carrying the perception of being free (which they so rudely discover it is far from free) this should make some in the banner and search crowd a little wary.
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Matthias Wayland said:
Jan 08, 10 at 10:09 pmI wonder if the Unemployment Office is hiring? I’ve already tried everywhere else.
billiga webbhotell said:
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zygor guide review said:
Jan 12, 10 at 6:27 amIts about time people started to take matters into there own hands, having a job now leaves you with such an uncerten futur.
Russell Davison said:
Jan 13, 10 at 8:46 amHello ffn,
Thanks for the thought-provoking article. I’m also impressed with the quality and quantity of comments. My own thought is that, over the last 15 years, we should all consider ourselves to be either ‘self-employed’ or NOT self-employed. This is opposed to being ‘employed’ or NOT employed by a corporation.
My reason for this subtle new way of thinking is that the main reason why anybody resorts to working for someone else is for job security. And that doesn’t exist anymore. Why else would any human endure many of their waking hours in an 8 foot by 8 foot confined area?
So, as there is no corporate job security, then we should only consider corporate non self-employment as a transient between self-employment gigs. Maybe if this new way of thinking caught on then corporations would start to be more respectful of the contribution made by effective employees.
Simon said:
Jan 18, 10 at 4:02 amIt is the same in the UK, 100s of thousands have lost thier jobs and become self employed, so how many will fail over the next couple of years? This is a great place for job in human resources HR Jobs, vacancies and positions in the UK, Part of the One Job Group
buy load balancing router said:
Feb 03, 10 at 1:58 pmSmall businesses are the growth engine in any economy, even though huge corporations receive much more media attention when they announce new jobs. With that said, it really shouldn’t be surprising that self-employed people are propping up the economy.
However, as has been seen in the past, when government spending is pulled back on major programs and departments are scaled down in order to address national debt, self-employed service providers (such as construction contractors) are often hit hardest, which means the economic engines splutters to a halt.
negotiation tactics said:
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JC said:
Feb 04, 10 at 9:23 pmhttp://theunemployedsitin.blogspot.com/
Its time to do something about it yeah?