The Truth About Unemployment

The economy really isn't as bad as you may think

from daveramsey.com on 10 Aug 2009

By Dave Ramsey

I'm tired of hearing all the gloom and doom coming from the media about the economy and unemployment—I bet you are, too! Let's take a minute to look at the true reality of the situation and what we can do about it.

Yes, many people have lost their jobs and houses. You may be one of them. But guess what? People have lost their jobs and houses even in a bull market. Over 90% of people are still employed. That is pretty good! I was alive in the 1970s when unemployment hit double digits, and we're nowhere near that right now! I'm not making light of the fact that some people are struggling; I'm just putting the situation in the proper perspective.

Even though you may be currently unemployed, that doesn't mean you have to participate in the recession. People like me who have chosen to not participate acknowledge the reality of a slow economy and suffering people. However, we have decided that we're not going to form our lives around the negativity coming out of the media and government. We're intensifying our efforts and going to have the best year of our lives in spite of things slowing down.

Some people who find themselves unemployed will go into new careers or start their own businesses where they have the best year of their lives—professionally, financially and emotionally. Their current job losses are actually blessings in disguise. They believe this and are formulating game plans based on it. I guarantee there are men in their garages right now starting their own mechanic shops. The next Mary Kay Ash is writing up a business plan for new products she's just created. College students are developing "the next best thing" in their dorm rooms as you are reading this. This is reality!

So think about your skills and interests. How can you leverage those passions into something you enjoy doing every day while earning money for it? If you haven't lost your job but dread going to work, maybe it's time to fire your employer and go in a new direction. When you have a game plan for your money and career, you will have a sense of empowerment because you aren't a slave to the lender (or employer).

When employers start hiring because they believe their businesses will grow, recessions end. Many who have stopped hiring a healthy amount have been paralyzed by fear. They've lost hope. People who continue going about their lives in normal ways (without being irresponsible and buying stuff they can't afford) believe in the future. It's called hope.

You can have fear or hope. It's your choice.

I choose hope.

Pick up a copy of Dan Miller's 48 Days to the Work You Love, and start doing what you love to do.

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This certainly is the right time to reinvent yourself, or now is the time to do the things that you only dream about. My wife and I are planning a world bicycle trip. What that means is a complete makeover of how one looks at life and what we can do to enjoy it. We are selling our condo- we may not see much return- if any. We are also selling and donating just about everything we have collected over the years. Lighten the load= the ability to undertake your dream of world adventure. Good luck to all. Jim
Jim Guenther March 05 2010 9:47 AM

Hey Dave! It's Dave! First of all, I'd like to thank you for posting this inspirational article. The optimist and the pessimist are both asked, "Is the glass half full or half empty?" Our ol' buddy Murphy has taken but a sip out of our economy's glass. Should our country panic over 10% unemployment when the vast majority of Americans are working and being productive? Yes, there are those out there who are without a job through no fault of their own -however- excuses aren't going to get them back to work as long as folks are still making them for themselves. If you aren't working do SOMETHING productive! Depression can only happen if you let yourself stand still. Gloomy storm clouds are lazy. Trust me, they won't bother to chase you. GET UP! FIGHT! FIGHT! DON'T GIVE UP HOPE!
David Tyrrell February 25 2010 7:30 PM

Dave, I've been listening to your show for a month now. i picked up your total money makeover book. just getting into it. i've been unemployed for 7 mths now. im a Project Architect. i was laid off due to the Madoff scandel. God blessed us the entire time. i was able to pick up some work with a colleague of mine. then God opened another door to work more hours at another architect office. even though im not full time we have food on our table, lights, and we are getting thru this. the architect is now wanting me to go full time. i will be taking a huge hit from what i was making, but i am learning alot. this is going to help me out because i know God will open another door to the job i am going to love. thanks
RON February 18 2010 8:17 AM

i'm a interior architect in the bay area with 15 years experience and after 1 year still can't get a job! But I have decided to go to nite school - volunteer in the hospital for a physical therapy job - 4 years from now - but got 48k in debt omg ! I'm stress with the lack of money? Unemployment insurance can only go so far. I've though of starting a design consulting but got so much on my plate. Help suggestions? Patrick
patrick February 12 2010 5:13 PM

Great stuff, Dave! I realize that we are all living in hard times. I am getting a second job, paying off debts, used envelope system for the first time last week... felt good! We're in a hole, but this recession hopefully makes us all realize that we need to stop digging! I am starting to plug my years-worth of holes, today!
Carlos January 23 2010 1:02 PM

It gets frustrating when people make comments about things that they don't understand. The media is not feeding us a lie. Maybe you live in an area that has all kinds of options for hire, but where we live in Michigan, there's no jobs to find for a first job, let alone a second job! It really is true that people can't find work and are losing their homes. My husband has been on unemployment for the majority of the past three years and is on unemployment once again. This time, he is going to use the time to go back to school and retrain in another field and then if we have to move, we will. I used to think that people that didn't have jobs and used government assistance were all lazy, but when it becomes your reality, you realize that that mentality is not really true. There are those that take advantage of the system, but there are those of us that did not choose to be where we are but are believing that God has a better future for us!!
Kathryn January 21 2010 2:05 PM

Sonja, Don't be so judgemental. Mary asked "what does she do when her house is foreclosed on and she is living in a tent with her kids?" For all you know she may be typing her conversation on a a computer in a public library. Send encouragement not decouragement.
Duane January 19 2010 9:38 PM

Mary is living in a tent with a computer? I love this article. Thanks.
Sonja zook January 07 2010 12:53 PM

The company that I worked for closed the doors after 90 years of business. My experience is in a field that is so dependant on new housing starts. I also have to be out of my lease by the end of January. This is very frustrating, it seems that I am overly qualified for the positions that I apply. What are we supposed to do?
Michael January 06 2010 12:01 PM

I have been employeed in 2009 for 8 months out the year. I had 3 jobs and got layeddoff from all of them. i have been looking for job eveyday but just can't find one in my field, but when i look for a job that is not in my field usually u need experience in that field so they won't hire me so Iam in a pickle and starting to give up.
Jack Yount January 03 2010 7:53 PM

Very hard to see the "truth" in these statements when you've been out of work for 11 months. Putting in all over the place and when grocery stores, newspaper delivery or home depot won't hire you because they say "you'll just leave when you get a job in your field". How nice...when you are willing to work hard just about anywhere to make ends meet and places won't give you a chance because they fear you will leave when a better opportunity comes around. Tell me, what do I do when I'm foreclosed on my home and I am living in a tent with my kids??
Mary December 28 2009 1:47 PM

Kids being homeschooled is an option that you may not be able to afford. Public school for them, full day job and part time as well for you. Hubby may have to take 2 part-time gigs to put food on the table. Good luck n dont just sit still.
greg December 09 2009 8:33 PM

My husband is 62, has Alzheimers and is on disability. I got laid off my graphic artist job September of 08. I've become so discouraged I quit applying for jobs. Seems no one wants to hire a 58-year-old. Any ideas?
Sue December 09 2009 3:43 PM

Dave, I listen to you all the time and you always tell people to get an additional part-time job to pay off debts. What would you recommend to people who cannot find a job? I know that sounds crazy, but believe me, in my area (NW Illinois) it is reality. I am getting desperate, as are many of the people I know. I would love to work more to pay down my debt, but I try and try and try and just can't find anything. Any ideas would be greatly appreciated.
Sheri December 03 2009 2:05 PM

I'm sorry, but it is hard to be optimistic when your husband is going on ten months of unemployment, you have gone through your savings, you are in the middle of foreclosure and you are afraid to pick up the phone because there is no money to pay your bills. Our unemployment in our area is close to 20% and the college is so crammed with people looking to re-train that they are no longer accepting new students. I work three nights a week and home-school our five kids, but we feel completely directionless and I feel guilty for thinking that I just want to come home so that I can do a good job with our kids. It is nice to say that you are not going to participate in the recession, but for some of us, it wasn't left to choice. Where is the practical advice for those of us who see no way out of this?
Kathi November 12 2009 12:47 AM

Dave is absolutely right! It's according to your faith, and who you associate with.
Rev.Dr.Carl Ray Marshall Sr.D.D. October 04 2009 8:36 PM

I couldn't agree more. Two years ago I lost my job. I was actually fired for doing my job. I'm not saying finding a new job is easy. It isn't. I was unemployed for six months then temped at a low paying job full of uncouth unprofessionals for another six months before finding a job with much less pay than the one I lost. In hindsight it was the best thing to happen to me. I was miserable at my old job, and while unemployed I enrolled in Financial Peace University. My wife and I are easily doing more with less. I am working full-time in an enjoyable job with good health benefits. God had a plan for me and my family and I have truly been blessed. I do disagree with the previous poster though. There are not plenty of jobs to choose from. There are plenty of jobs, but not plenty where you can support a family and pay the mortgage as a new hire.
Bill September 25 2009 7:25 AM

Finally someone that makes sense. I keep telling my friends that what the media is feeding us is a lie, so that we will live in fear. I am looking for a job right now and there are plenty to choose from, its just deciding what I want to do. I have that luxury right now. If I had to feed my family, I would work 2 jobs and I would not be as picky.
Debra September 13 2009 6:12 PM