Posted by John Vinson

With the job market in the current state it’s in, finding a job becomes much more complicated than normal. Instead of simply looking for a job which pays well, looks fun, and provides benefits, there are even more factors to consider. Will this company be able to sustain itself? In a couple of years will it dissipate like so many others? These additional questions can add a load of stress, to an already intense situation.

With a turbulent setting, people’s minds tend to lead them in safer directions. The problem being, what they think is safe might end up hurting them. For instance, in a market of uncertainty, people might assume that searching for a job within a long standing company would be the best course of action. According to this study, these pre-conceived notions might be wrong.

The study is called ‘The Importance of Startups in Job Creation and Job Destruction’. It shows that start-ups are responsible for most of the job creation in this country.

Digging deeper into details, start-ups and newly established companies fare better in a recession market as well. Between 1977-2005, start-up companies created an average of 3 million jobs per year. While established businesses lost 1 million jobs a year.

Taking these numbers into account, what should be your course of action moving forward? First, it would be beneficial to stop looking at established companies solely. The uncertainty of start-ups is what turns most people off from going in that direction. Their instincts aren’t without warrant either, as 95% of start-ups don’t last more than 5 years.

Taking that failure rate of start-ups into account, it would seem as though you might not want to look in that direction, even with all the job creation. However, the best course of action is to determine your own situation and determine if the chance of failure is worth it. For those who are looking at entry level status, start-ups could be the perfect stepping stone. As many entry level jobs rarely last longer than five years anyway. And even if the business fails, you have experience to reference in an application.

Taking all of the data and scenarios of this article into account, the point is to always keep your options open. Don’t be close-minded when job searching. Though your apprehensive mindset might tell you to stay away from start-ups, the data shows the job market is welcoming to these new companies.

This entry was posted on Tuesday, July 20th, 2010 at 10:46 am and is filed under Employers, Jobs, Tips. You can leave a response, or trackback from your own site.

About the Author: John is a staff writer for WebProNews.