Unemployment as a risk and potential oppurtunities

Unemployment as a Global Risk

The national unemployment rate is defined as the percentage of unemployed workers in the total labor force. It is widely recognized as a key indicator of the performance of a country's labor market. As a closely watched economic indicator, the unemployment rate attracts a lot of media attention, especially during recessions and challenging economic times. This is because the unemployment rate doesn't just impact those individuals who are jobless–the level and persistence of the factors of unemployment have wide-ranging impacts across the broader economy.
Unemployment is seen as the biggest worry over the next 10 years for business executives around the world, closely followed by concern about the spread of infectious diseases, according to a survey by the World Economic Forum.
Unemployment rates have rocketed due to lockdowns and other restrictions to combat the coronavirus pandemic, with fears of worse to come in countries which have furloughed workers.
“The employment disruptions caused by the pandemic, rising automation and the transition to greener economies are fundamentally changing labour markets,” said Saadia Zahidi, Managing Director at the World Economic Forum (WEF).

Oppurtunities with unemployment

In a nutshell, unemployment lowers the opportunity cost inherent with pursuing any kind of entrepreneurial venture. It takes a lot of bravery and risk to drop everything and consistently put in 80-hour workweeks as you build your business from the ground up.
There's another reason unemployment can lead to new business creation. Simply put, recessions can open up opportunities.
This isn't just because many businesses close down, though that's part of the picture. Once competition in a given area (for instance, the restaurant industry) is thinned out due to businesses closing down, it means that those with the funding and the drive to open their own restaurants will have multiple spots to do so when the proverbial dust settles.
More broadly, though, recessions and wide-scale unemployment can reveal insights or show visionary entrepreneurs pain points that no one recognized even existed before. Take 2007-2009, where unemployment peaked at a staggering 10%. As a result, house flipping boomed, and for a good reason: There were tons of properties with rock-bottom prices.

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