Fewer unemployed managers and executives started their own firms in 2010, the weakest startup pace in a quarter century amid signs of an improving U.S. job market, an outplacement job index reports. Also, fewer managers moved in search of work.
An average of 4.7 percent of jobless white-collar execs opened their own firms in each quarter of 2010, according to Challenger, Gray & Christmas' Job Market Index. The quarterly average was 8.6 percent in 2009, the index reports.
Challenger Gray said the slowdown in startups took place as the hiring market begins to show some signs of life.
Last year's pace is the lowest since the firm launched its index in 1986, CEO John A. Challenger said.
Improvements in the job market also may have contributed to the sharp decline in start-up activity.
Meanwhile, an average of just 7.6 percent of job seekers relocated each quarter for new positions, Challenger Gray said. This figure also represents a record low. It is down from an annual average relocation rate of 13.3 percent in 2009 and four percentage points below than the previous low of 11.6 percent, recorded in 2008.
Job seekers may also be opting to eschew relocation due to increased confidence in their ability to find employment locally, Challenger said.
"Continued weakness in the housing market is undoubtedly a leading factor behind the decline in relocation,'' he said. "Job seekers who own a home - even if they are open to relocating for a new job - are basically stuck where they are if they are unable or unwilling to sell their homes without incurring a significant loss.''