Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
Small Business News Highlights for June 11:
- Jobless claims fall to 1.5 million last week
- Some SBOs choosing closing down over opening up
- COVID-19 pandemic driving push toward contingent workers
1.5 million file for unemployment last week
“First-time claims have been gradually falling since hitting a record 6.8 million in late March, indicating that the downturn triggered by a near shutdown of the country in mid-March to control the spread of COVID-19 is bottoming out.”
A total of 1.5 million American filed for first-time unemployment benefits last week, indicating that perhaps the economy is beginning its slow march toward recovering from the shutdowns forced by the COVID-19 pandemic.
Overall, the total number of unemployment claims remained at 21 million last week.
Some small business owners choose to close down
“I had the American dream. I fear it may live on for others, but for me it will always be tarnished.”
For small business owners faced with the prospect of spending tens of thousands of dollars to restock or shift their business model in order to reopen, closing down altogether is proving to be the more realistic choice.
In particular, restaurant owners, gyms and other businesses that must strictly limit the number of patrons allowed in at one time must decide if it’s worth it to attempt to stay afloat on even narrower margins than before.
COVID-19 pandemic driving push toward contingent workers
“CEO Mark Zuckerberg suggested in a May 21 town hall that half of its workforce could be working from home in the next 5 to 10 years.”
A new report from Gartner sheds light on the ways that the COVID-19 public health crisis is shaping the future of work in this country.
The study found that nearly a third of businesses are replacing full-time positions with contingent workers in an effort to cut costs. Work from home is quickly becoming the norm for other organizations, with 16% of companies reporting that they are finding ways to measure employee productivity.
Experts note that treating employees well is still of paramount importance to the success of businesses.