The following 14 occupations are some of the most prevalent recession-proof jobs.
What occupations are not affected by the recession?
A position in the medical industry, whether you’re a doctor, physician assistant, nurse, or radiographer, is an excellent location to work during a recession.
What is going on in the economy has no bearing on our physical or emotional wellness. Even in a downturn, people will become unwell. Appendixes will break, babies will be born, and accidents will occur.
If you want the most employment stability, a career at a hospital or clinic is a good option. People will get sick and injured, regardless of what happens in the stock market or with GDP growth. They will require medical attention. Many recession-proof occupations are available in the healthcare business.
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.
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.
Are nurses immune to the economic downturn?
Nursing employment and pay increased during the recession, corroborating prior research that suggested nursing is a recession-resistant, countercyclical profession.
During a recession, who suffers the most?
The groups who lost the most jobs during the Great Recession were the same ones that lost jobs throughout the 1980s recessions.
Hoynes, Miller, and Schaller use demographic survey and national time-series data to conclude that the Great Recession has harmed males more than women in terms of job losses. However, their research reveals that men have faced more cyclical labor market outcomes in earlier recessions and recoveries. This is partly due to the fact that men are more likely to work in industries that are very cyclical, such as construction and manufacturing. Women are more likely to work in industries that are less cyclical, such as services and government administration. While the pattern of labor market effects across subgroups in the 2007-9 recession appears to be comparable to that of the two early 1980s recessions, it did have a little bigger impact on women’s employment, while the effects on women were smaller in this recession than in previous recessions. The effects of the recent recession were felt most acutely by the youngest and oldest workers. Hoynes, Miller, and Schaller also discover that, in comparison to the 1980s recovery, the current recovery is affecting males more than women, owing to a decrease in the cyclicality of women’s employment during this period.
The researchers find that the general image of demographic patterns of responsiveness to the business cycle through time is one of stability. Which groups suffered the most job losses during the Great Recession? The same groups that suffered losses during the 1980s recessions, and who continue to have poor labor market outcomes even in good times. As a result, the authors conclude that the Great Recession’s labor market consequences were distinct in size and length from those of past business cycles, but not in type.
Are employment in healthcare recession-proof?
Is health-care unaffected by the economic downturn? Is healthcare pandemic-proof, or is that a more accurate question to ask? Surprisingly, the COVID-19 public health catastrophe has wreaked havoc on the healthcare profession in the United States. Healthcare occupations are predicted to increase at a far greater rate than all other occupations (14 percent) between 2018 and 2028, according to the US Bureau of Labor Statistics (BLS), with the healthcare sector adding nearly 1.9 million new employment. 1However, by the end of the first quarter of 2020, the healthcare industry had lost 1.4 million jobs, and actual personal consumption of healthcare services had fallen by 4.97 percent from the fourth quarter of 2019. 2 As a result of the COVID-19 epidemic, the American Hospital Association (AHA) forecasts that hospitals and health systems will lose a total of $202.6 billion in revenue between March 1 and June 30, 2020. 3 COVID-19 is the exact cause of the looming economic downturn that has thrown not only the US economy, but also the once-recession-proof healthcare business, into disarray. 4 Such an unusual circumstance necessitates an examination of how this economic downturn in the healthcare industry differs from previous recessions, as well as the extent to which COVID-19 is affecting the healthcare sector’s finances.
With almost 1.5 million COVID-19 infections as of May 2020,5 no obvious end to the pandemic in sight, and the virus’s potential reappearance in the fall and winter, it’s easy to see how such a public health disaster would be beneficial to the healthcare business. That idea, however, could not be further from the reality. COVID-19 has had an unexpected influence on the healthcare industry in the United States. This virus is innovative not just in the sense that it is (still) a mystery, but also in the way that it has caused massive economic ruin in the healthcare industry, which is a significant departure from previous decades. In the past, healthcare has mostly remained unaffected by economic downturns. 6 Indeed, some economists and healthcare professionals consider the healthcare industry to be recession-proof, owing to its ability to operate as a buffer against the usual cyclical business cycle. 7 During the Great Recession of 2007-2009, for example, the healthcare industry increased jobs (more than 850,000 between 2007 and 2010), whereas the rest of the economy lost about 8 million jobs. 9
However, healthcare has never been entirely recession-proof, that is, immune to all economic downturns.
10 The assumption that healthcare is recession-proof stems from the belief that people will still get sick and require healthcare services even during economic downturns.
11 In general, healthcare reacts to economic downturns differently than other industries. When the labor force experiences large job losses, individuals’ healthcare consumption habits begin to shift when they lose their employer-sponsored health insurance. 12 In other words, healthcare consumers (i.e., patients) decide to postpone elective surgeries until the broader economy’s outlook appears brighter. 13 As a result of this consumer behavior, the healthcare sector experiences economic downturns later than the rest of the economy, and then recovers after the rest of the economy. 14 Physicians and hospitals are the most exposed to immediate consumer spending shifts during these times, therefore they are at the most danger. 15 Furthermore, McKinsey & Company believes that during a typical economic downturn, both for-profit and nonprofit providers will experience a 30 percent decline in earnings before interest, taxes, depreciation, and amortization (EBITDA). Payors and pharmaceutical benefit managers (PBMs) are slightly less at risk, with EBITDA drops ranging from 5% to 20% and 5% to 15%, respectively. 17 Although providers, payors, and PBMs all face financial challenges during recessions, the healthcare business is rarely as affected as the rest of the US economy. 18
Healthcare has historically been less volatile than other cyclical sectors during recessions.
19 The fact that the majority of Americans have health insurance contributes to healthcare’s insulation. 20 Payors will continue to pour money into the healthcare economy, while spending in other cyclical industries dries up dramatically. 21 Older Americans, who are sicker (and hence consume a disproportionate quantity of healthcare services) and have extensive insurance coverage through Medicare, are the most frequent users of the insurance system. 22 During economic downturns, this expenditure by government payors, as well as private insurers, has been the primary source of new jobs in healthcare, which is why some economists regard healthcare as leading economic recovery because the long-term jobs produced have helped strengthen local economies. 23
While a comprehensive evaluation of the COVID-19 pandemic’s eventual estimated financial impact on providers has yet to be conducted, early information suggests a dire situation. The loss of jobs in the healthcare sector has been astonishing thus far, and the huge income loss lies behind all of the pay cutbacks, furloughs, and layoffs. 24 In the wake of the COVID-19 epidemic, hospitals and health systems are suffering catastrophic financial issues, with numerous health systems reporting revenue losses of more than 50%. 26 The AHA estimates that, after accounting for the net financial impact of COVID-19 on hospital costs, total revenue losses resulting from the cancellation of non-emergency (i.e., elective) procedures; the reduced volume of emergency room visits and hospital admissions; additional costs associated with the purchase of needed personal protective equipment (PPE); and the costs of additional compensation that some hospitals are providing to their front line workers, on average, 27 Moreover, as a result of the cancellation of elective operations, emergency room visits, hospitalizations, and surgeries have all decreased significantly. As a result, healthcare personnel who aren’t caring for COVID-19 patients are practically unemployed, which is unlike prior economic downturns. 28
The COVID-19 outbreak has also brought to light the unstable approach by which hospitals try to stay afloat. Healthcare is typically a low-margin business with large fixed costs for providers. If revenue stops suddenly, it could be (soon) terrible for operational operations. Treating patients with a fatal condition is significantly less profitable for hospitals than doing elective surgeries. 29 Many hospitals rely on elective cases as their principal source of revenue, allowing them to lose money on other services while still remaining profitable. 30
Many physician practices have experienced a similar revenue shock.
31 Some primary care practices are reporting 70 percent decreases in healthcare utilization,32 which, like hospitals, has resulted in clinical staff pay cuts, furloughs, and layoffs. 33 To prevent the risk of spreading the disease, many doctors have elected to close their offices. 34 Others that have remained open are reporting a significant drop in demand as older patients are fearful about contracting COVID-19 and other treatments are postponed due to economic instability. But, unlike during the Great Recession, another obstacle to healthcare access exists this time: rising healthcare out-of-pocket costs, particularly with regard to insurance policy deductibles, which is harming commercially insured beneficiaries. 35 Currently, 25% of private insurance beneficiaries have a $2,000 or higher deductible, which is four times the number of people a decade earlier. 36 As a result, much more than during the Great Recession, individuals who would otherwise visit a physician’s office for a visit or operation may opt out for financial reasons.
COVID-19 has drastically affected the economics of healthcare because to the rapid decline in demand for services, high expenditures (factoring in the healthcare business model outlined above and the greatly greater requirement for additional PPE and ventilators)37, and very little income coming in for providers.
38 The virus’s unique nature has caused significant financial damage to the healthcare industry, potentially leading to a recession. The indefinite length of the pandemic confirms that the COVID-19 pandemic, and the ensuing economic catastrophe, are unlike anything the United States has seen in recent memory, and the long-term financial impact on the healthcare business remains unknown.