The average job-loss rate for Australia from December 1981 to December 2008 is plotted in Figure 2; it shows that there was a slight rise in the job-loss rate in the economic downturn during the early 1980s and again during the early 1990s.
This more clearly demonstrates that the periods of economic downturn have been associated with a significant drop in the job-finding rate, rather than a significant upward movement in the job-loss rate.
The decline in the job-finding rate during the periods of economic downturn can be explained in the context of the job vacancy to unemployment ratio.
The cyclical component of the job-finding rate shows extreme volatility in the economic downturn of the early 1980s and early 1990s.
During economic downturns, nonprofits tend to lose staff, particularly as organizations reduce their payrolls in response to funding losses.
Nonprofits' incomes from virtually all sources are clearly threatened by economic downturns. Income from donations, revenues from sales of goods and services, investment earnings, revenues from governmental contracts and foundation grants are all in jeopardy.
Good risk management suggests that economic downturns also offer special opportunities for truly innovative nonprofits to increase their incomes above normal, prosperous levels by, for example, broadening the client base to embrace people newly distressed, appealing to new groups of contributors, or marketing new types of goods or services that, when prosperity inevitably returns, can be important new sources of significant income for a nonprofit that proved itself innovative in difficult times.
Simultaneously, some nonprofits will find that economic downturns offer opportunities to expand their property holdings.
During economic downturns, a nonprofit's conduct could come under especially close scrutiny as the overworked staff make errors that attract negative public attention or as disgruntled clients seek a public forum for imagined or exaggerated wrongs.
Economic downturns bring both threats and opportunities to which a resourceful nonprofit can and should respond constructively--both for its own protection and for the greater well-being of its clients and of the general community of which that nonprofit is a contributing part.
Jonathan Walker, head of member relations at the North East Chamber of Commerce, said: "It is incredibly sad to see a company that has been based on Tyneside for 280 years cease operating due to the impact of the global economic downturn
and our sympathies lie with the nine employees of Stephenson Clarke Shipping Ltd.