As 2021 comes to a close, the Great Resignation will remain one of the most memorable events of the year. As of September 2021, a record 4.4 million Americans have quit their jobs. Although job growth has remained steady all year, more job openings are reported each month.
Americans quit jobs for a number of reasons: low pay, feeling underappreciated, and more commonly, starting their own businesses. Becoming self-employed is becoming the new trend in working and is not likely to go away any time soon.
In fact, the coronavirus pandemic accelerated what was projected to be the future of work. No longer are businesses only able to operate through an in-person model. Instead, remote work has become possible through virtual meetings, cloud-based services, and collaboration tools like Slack.
Working from home is ideal
For some, this model has become the ideal situation. Working from home means greater flexibility of schedule, less stress, and greater productivity. But for others, the ability to collaborate in person and foster human connection is something that is missing.
As new jobs become available, only certain industries are in high demand. Retail, service, and commerce remain the most in-demand jobs, but with long hours and low pay, these jobs aren’t as desirable as they used to be.
Additionally, with annual inflation being projected to be 5.4% next year, jobs like this will not help pay bills that quickly go up without wage increase to match the price increase.
Instead, many new businesses were started in 2021, with a record of 1.4 million new business applications in September 2021 alone. Many decided they wanted to work for themselves if they had the skills and resources to do so, and with remote work becoming the norm, it has become easier to make the transition from a corporate employee to an entrepreneur.
Fear of no coverage
Taking the leap to start a business is a big risk. Many feel like they can’t make the jump because they are tied to a job for one reason: health insurance benefits.
However, as a self-employed person, you can get health insurance on the marketplace or through a private source up to 60 days after quitting a job. This means that there is no reason to stay at a job for the fear of no coverage.
As a self-employed person, you can also count your health insurance premium as a deduction on taxes. New businesses often have high start-up costs in the first few years, so every dollar counts to reduce annual tax bills.
Starting business grants the freedom and flexibility to work for yourself. Staying at a job because of benefits should no longer prevent you from starting the journey to turning a passion into a full-time job.
Starting your own business or know someone who is? Contact me now to look at your options.