PS if the employment rate goes up that's also a good time to start a business cause the economy is doing well so there's enough for everyone
Well, you need to really look at what sectors of the economy have lost the jobs - mostly retail, manufacturing and construction - so if you're looking to start a technology company, you might be out of luck with this newly freed labor pool.
The thing is these things work their way through sectors of the economy. It's hit banking, housing and construction/related so far pretty hard - it hasn't quite gotten to technology though. Or has it? Anyone have any thoughts?
edit: or even better for a web company. poor, bored people can spend plenty of time online
This sentiment is at odds with any empirical examination of past recessions. Just because some guy at flickr said it don't make it true. Specific cases vary, but the sentiment is simply false in the general case.
The bottom of the business cycle is a good time to start. On the actual downswing the non-discretionary spending businesses offer a safe-haven, but not great opportunity.