Despite the fact that moviegoing is typically touted as “recession-proof,” exhibitor Cinemark saw a 60 percent drop in business. To be fair, the decline in exhibitor shares occurred even while movie attendance remained stable, but many believe it might be considerably worse this time around, given the widespread availability of in-home and mobile streaming, which is significantly more widespread than it was a decade ago.
“As people’s disposable income decreases, issues such as shelter and food demand more attention than entertainment,” adds Vogel.
Tempkins, on the other hand, believes that movies, and even live events, will outlast television. “People need to get out of their houses,” says the author. “They need other people to some extent,” he explains. “Even if it means reduced prices, entertainment will adapt.” People are in desperate need of a release. Perhaps it won’t be supper, but rather a movie, concert, or athletic event to divert their attention away from the economy.”
Those predicting a U.S. recession usually defined as two consecutive quarters of falling gross domestic product, and thus at least six months away point to a stock market that has fallen 9.4% since its recent high on Oct. 21 (a 10% loss means stocks are officially in correction mode), as well as a near-flat yield curve. If previous recessions are any indication, when the yield curve inverts (long-term rates fall below short-term rates), it will be a clear indication that a recession is on the way. Those who doubt an impending downturn point out that not only has the curve not yet inverted, but the entire notion has lost its predictive validity because so many people now grasp the consequences that financial behavior will change en masse.
There is discussion about the entertainment industry’s resiliency, just as there is about whether or not a recession is approaching. Patrick Corcoran, a spokesman for the National Association of Theatre Owners, says that the “box office is not immune to recession but it is resistant,” and that exhibitors have seen their stock prices plummet even while attendance has increased modestly in six of the past eight recessions.
What is a recession-proof industry?
Healthcare, food, consumer staples, and basic transportation are examples of generally inelastic industries that can thrive during economic downturns. During a public health emergency, they may also benefit from being classified as critical industries.
What industries thrive during a downturn?
8 industries with the best job security during a downturn
- Health-care services. People get sick and require medical care regardless of the state of the economy, thus the demand for health-care occupations is fairly stable, even during a downturn.
Is the video game sector immune to the downturn?
What doesn’t belong here: education, energy, milk, Mario, and health care? Any leisure business, in my opinion, cannot be deemed “recession proof.” The video gaming business, on the other hand, could present itself as recession-proof.
Consumers dedicate less money to entertainment activities during these periods. This does not suggest that they have fully eliminated such a budget; rather, they have reduced it.
Consumers will likely reduce their spending on movies, music, theme parks, vacations, and restaurants before cutting their video game budget, especially in the core video game sector. (Note that the “core video game market” and the “hardcore” video game market are not the same.)
Of course, some people will have to cut back on their video game spending. Those that do, on the other hand, either devote their whole entertainment budget to video games or devote the smallest amount. Those two categories will likely account for about 20% of the market; the remaining 80% will not.
We can guess which segments of the gaming business will be affected. Extreme hardcore gamers are likely to reduce their expenditure on games in which they have never had a strong interest. On the other hand, the ultra-casual gamer is likely to stop playing video games entirely.
Because demand for the Wii significantly outnumbers supply, prices may fall by 10% in the next months without affecting Nintendo’s bottom line. We don’t know how strong Wii demand is; all we know is that it exceeds supply.
The DS, on the other hand, is unique in that it is the cheapest of all the video gaming devices. Although I believe that a recession would reduce demand for the DS, I believe that the impact would be minor.
The video game industry will continue to thrive in 2008. The average price each game sold will rise as more people buy next-generation devices. With the solid release plan for 2008, we may expect a double-digit percent rise in software sales. Given that we expect next-generation hardware price cuts in the next months before June we see a likely flat 2008 for hardware sales.
To summarize, consumers are more willing to cut other expenses in their budget before eliminating video game spending. Of course, the video game sector will not be immune to a downturn in the economy, but due to its rapid expansion, the repercussions of a downturn will largely go unnoticed. In the video game industry, a downturn is akin to flinging rocks at a speeding train.
In a downturn, which industry produces the most money?
A recession-proof business can be extremely profitable for people in both good and bad times. Whatever the state of the economy or the stock market, certain company concepts, such as those listed below, have a good possibility of succeeding despite the rest of the financial doom and gloom.
Many well-known or historically successful enterprises were founded during economic downturns. The Walt Disney Company was created in the late 1920s, at the commencement of the Great Depression, and the Hewlett and Packard electronics company was founded in the late 1930s, during the second recession.
Rising interest rates and shifting GDP pose far less of a threat to the finest recession-proof enterprises mentioned below than they do to most other businesses, with many of them having the ability to do even more business than usual.
Food and Beverage Business
Because everyone still needs food and drinks to live, the food and beverage business is one of the most recession-proof industries. Because it is not a luxury that can be put aside in difficult times, enterprises in this area can thrive even in a downturn.
What industry is the most stable?
Several people are looking for a new job they can hold on to for a while, as a result of record-breaking layoffs across many industries as a result of COVID-19. People may be more willing to take a chance on a fresh, fledgling company or a “cool” field in a healthy employment market because they know that if things go wrong, another job is only around the corner. However, in today’s harsh employment market, businesses that provide good job securityincluding ones you may not have considered beforemight become the “coolest” of all. Unemployment rates, industry or occupational growth, and “work tenure” are three major criteria that influence which industries or occupations have the most job security.
Management (5%), computer and mathematics jobs (4.4%), legal (2.8%), and healthcare (3.8%) are the occupations with the lowest unemployment rates, according to the Bureau of Labor Statistics, which is part of the US Department of Labor. (Many positions with better job security need more education, so continuing your education may be a good option if you wish to have a more secure career in the future.)
When an industry expands rapidly, it can lead to increased job security. The average industry growth rate is 0.5 percent, although healthcare, along with computer systems, software, and data or information-related areas, education, and professional/scientific and technical services, has been one of the fastest growing industries (at 1.6 percent) for many years.
Finally, consider “job tenure,” or how long someone have worked at the same company. The average job tenure is 4.2 years, but some industries have substantially longer tenures, such as manufacturing, telecommunications, government, and utilities. Following are some industries and vocations that may offer the best job security based on these three variables.
Healthcare has long been one of the fastest-growing industries, with healthcare jobs accounting for more than half of the top 20 fastest-growing occupations, including entry-level jobs like health aides as well as jobs that require extensive training like nurses, physician assistants, and physical therapists. Over the next several years, the global pharmaceutical market is predicted to rise by 3-6 percent. Healthcare demands will, sadly, continue to rise as the population ages and people are exposed to the long-term health effects of COVID-19. Exploring your job alternatives in the healthcare and health-related areas might help you choose a long-term career path that you enjoy.
Pfizer: Pfizer is a leading pharmaceutical company in the world. Medicines and vaccines, as well as several of the world’s most well-known consumer health care goods, are all part of Pfizer’s global portfolio.
Roivant is a tech-enabled biopharmaceutical business whose mission is to enhance healthcare by providing new medications and technologies to patients quickly.
GSK:GSK is a global healthcare firm that researches, develops, and manufactures novel pharmaceutical medications, vaccines, and consumer healthcare products.
Government employment encompasses a wide range of positions, including K-12 teachers in public and charter schools, police and firefighters, policy analysts, diplomats, librarians, parks department employees, public health professionals, scientists, and others. Government can be a rewarding field to consider if you enjoy assisting your fellow citizens. Because governments cannot often declare bankruptcy, government positions are more likely to have union protection, and many of the jobs are deemed necessary for a functioning society, government is considered one of the most stable employment sectors.
Governments can still have layoffs (sometimes known as “force reductions”), and large-scale budget cuts owing to tax revenue losses might result in layoffs in the sector. When there is a decrease in force, however, impacted employees may be given first priority for a new job within the government. Workers in the public sector had a median job tenure of 6.8 years, which was significantly longer than most, with federal agency employees having the greatest tenure at 8.3 years. Despite the fact that the government sector is not increasing as quickly as other businesses (federal government employment is predicted to decline by 0.5 percent through 2028), many government personnel are expected to retire in the future years, resulting in job openings.
Telecommunications, insurance, utilities, energy, logistics, and transportation are industries that will never go out of style.
Whatever happens, certain things will always be required. Electricity, internet access and cell phone service, insurance, and goods transportation are unlikely to disappear overnight, which may explain why personnel in utilities, telecommunications, finance & insurance, and energy (mining/oil & gas extraction) have longer tenure than the average. While you may not have considered insurance, logistics, energy, or telecommunications before, these areas provide numerous options for students of all backgrounds, from liberal arts to engineering.
PURE Insurance is a member-owned, purpose-driven business that provides comprehensive property and casualty insurance to high-net-worth individuals.
Baker Hughes is a major energy technology business that develops, manufactures, and services innovative technologies that help the energy industry progress.
XPO Logistics: XPO serves the world’s most successful enterprises with cutting-edge supply chain solutions.
Ericsson: As the world’s leading provider of 5G and telecom technology, Ericsson is the preferred partner of AT&T, Verizon, and T-Mobile.
While job security in technology firms isn’t perfectthe industry is always evolving, there are a lot of startups, and workers need to keep their skills up to date to be employedthe field’s rapid development ensures that positions will continue to be accessible for people with the necessary talents.
Information security, statisticians, mathematicians, and software engineers are among the fastest-growing careers in the tech or data areas. Many organizations in the IT industry overlap with some of the other stable industries on this list (such as healthcare), making it a fantastic industry to look into for both technical and non-technical roles (such as software engineer or data scientist) (such as customer success or HR).
Palo Alto Networks: Palo Alto Networks is the world’s leading cybersecurity company, building the cloud-centric future with technology that is changing the way people and businesses function.
Esri: By combining the science of geography with the technology of GIS, Esri technology gives meaning to maps.
Qualtrics is a leading experience management platform that enables businesses to gather and act on customer, product, brand, and employee experience data all in one place.
No employment is ever really secure in our ever-changing environment. However, examining industries based on growth, unemployment rates, and job duration can help you boost your chances of work stability. Data can help you narrow down your search, and you should have an open mind as you learn about different industries and what they have to offer.
What are some recession-proof investments?
- Assets, companies, industries, and other organizations that are recession-proof do not lose value during a downturn.
- Gold, US Treasury bonds, and cash are examples of recession-proof assets, whereas alcohol and utilities are examples of recession-proof industries.
- The phrase is relative since even the most recession-proof assets or enterprises might suffer losses in the event of a prolonged downturn.
Are teachers immune to the economic downturn?
Teaching is a recession-proof profession that offers job security. It’s also a fantastic job opportunity for anyone who enjoys interacting with others. Yup! Teachers have not stopped working throughout the COVID-19 pandemic, despite the fact that other industries have been severely impacted.
In a recession, who suffers the most?
The retail, restaurant, and hotel industries aren’t the only ones that suffer during a recession. During periods like these, industries like automotive, oil and gas, sports, real estate, and many more face significant decreases. Although the recession brought on by the coronavirus epidemic is unusual, many of these businesses have had difficulties in the past.
However, as we already stated, not all is doom and gloom. Certain industries have done a good job of riding the wave and adapting.