62,000 Business Could Fail In 2009

Cutting jobs is one thing. Going out of business is another. As it becomes clear that millions of jobs will be lost by companies which are weak but will probably make it through the recession, the concern is shifting to companies which will not make it at all.

Since, by many estimates, businesses with under 100 employees represent more than 50% of the jobs in the US, watching a huge number of them burn out has become cause for increasing alarm, an alarm which does not appear to be addressed by any government bailout program.

According to the FT, The US will see 62,000 companies go bust next year, compared with 42,000 this year and 28,000 last year, says a report by Euler Hermes, part of German insurer Allianz. If the median number of people at those companies is 50, another three million people could be out of work.