Two key reports were released this week that show that the Great Resignation continues and that many of those quitting their jobs are turning to entrepreneurship as they look for a lifestyle change. On Wednesday, the US Bureau of Labor Statistics released their job opening and labor turnover survey which showed 4.3 million people quit their jobs in January, 2022. This was only 2.8 percent down from the previous month but higher than the previous year.
While some of this is due to job switching, a large number of those are choosing instead to start their own business. That same day, the United States Census Bureau released their February, 2022 Business Formation Statistics Report showing 419,518 new business applications were submitted last month. Added to January’s numbers of 428,505, over 800,000 businesses were created in the first two months of 2022. While these numbers are slightly down from the peaks the US experienced last year, they remain 40% higher than pre-pandemic levels.
This comes on the heels of a favorable jobs report which showed decreasing unemployment last month and yesterday’s news that shows wages continue to increase. Together, it’s becoming increasingly clear that the Great Resignation isn’t a COVID-related fad and is largely a result of employees wanting to improve their livelihood. For a huge chunk of them, that means building their own businesses so they can have more control over how and when they work.
It remains to be seen if this mass influx of entrepreneurs will spark a Golden Age of Entrepreneurship. Studies show that the first year of owning a business is the hardest and many hurdles obstruct the road to success. But the signs all point to this trend not abating anytime soon.