The global credit crisis and a stagnant home economy have made this one of the most difficult times in recent history to find work. Approximately 14 million individuals are currently unemployed, according to the Bureau of Labor Statistics, nearly double the number since the recession began in December 2007. And, while the unemployment rate in January 2011 decreased to 9%, the lowest in nearly two years, it is still high by historical standards.
To be a successful job search in this environment, you must be calm, patient, and proactive, and you should attempt any (or all) of these suggestions.
When Jack Hinson was let off from his position at a prominent Internet content firm in Austin in mid-2008, he made his job search a top priority. “It’s critical to focus your time and efforts on possibilities that you’re passionate about and have the best possibility of succeeding,” he says. “Choose a few companies that interest you and pursue them, whether or not they have current opportunities.”
Focus on growth industries and places, according to Brent Berger, a Las Vegas-based scenario planning and strategy consultant. “Take a look at the energy,” he says. “With oil prices like they are, the demand for low-cost fuel and heat is growing. And any employment that helps people feel better is recession-proof. Similarly, as the next chapter of the war on terror unfolds, the National Guard, Border Patrol, homeland security, and the defense sector as a whole will prosper.”
Hinson’s new job came through an old acquaintance. “About a year ago, I chatted with the company’s founders and stayed in touch,” he continues. “Then I happened to run into one of them at a networking event.” So go through your connections in your Rolodex or on social media for business and let them know you’re looking.
Samantha Rubenstein, a public relations account professional in San Francisco, began looking for work precisely as the economy began to falter. She received a fantastic offer from Atomic PR after three months. She credits her accomplishment to more than just studying the firm. “She describes her preparation as “learning how to talk about oneself in a meaningful and effective way.” “To prepare for the interview, I made a list of possible interview questions and drew out bulleted replies to use as talking points.”
Russ Carr, a St. Louis-based designer and writer, has twice had a position lined up only to have it snatched away when the firm lost a key account or decided to divide the responsibilities among current staff. Carr began freelancing to supplement his income. “I haven’t given up looking for a full-time job,” he admits, “but freelancing has certainly kept food on the table.” “If you’re in a field that encourages it, don’t hesitate to do it.”
If freelancing isn’t an option, consider temping. “Consider interim staffing to fill a temporary spot for work that needs to be done regardless of the economy,” says Ronald Torch, president and CEO of the Torch Group, a Cleveland-based marketing staffing agency. Alternatively, you may work as a temp for a company that interests you. “Many of these possibilities pay well and can help you pay your bills until you find a permanent job,” he explains.
“Felicia Miller, assistant director of career services at the Art Institute of Las Vegas, advises, “Don’t overlook the personal touches.” “Don’t use a template cover letter; instead, tailor each letter to the talents and attributes the organization seeks. After the interview, always write a thank-you note or email. Use this email to go over any sections of your interview that need improvement.”
According to Carol Vecchio, founder and executive director of Centerpoint Institute for Life and Career Renewal in Seattle, the most important thing when looking for work in severe economic times is to keep a positive attitude. “Even in a job environment when unemployment is 10%, there is 90% employment,” she explains. “Each month, approximately 3 million jobs are available in the United States, and each job seeker is looking for one. “Those aren’t bad odds.”
In a tough economy, it might be difficult to obtain a good job, but following even a handful of these guidelines will increase your chances of landing one. “Remember, it makes no difference how many jobs there are or aren’t,” Vecchio says. “You’re just on the lookout for the proper one.”
What are the best careers to have during a recession?
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 it difficult to find work during a downturn?
While people are understandably nervous at the moment, it’s vital to remember that while finding a job during a recession is difficult, it’s not impossible. According to the Associated Press, the US unemployment rate rose to 14.7 percent in April as a result of the COVID-19 crisis, with 20.5 million jobs lost in a month.
During a recession, do individuals hire?
When it comes time to hire for your next position, building relationships with possible candidates allows you to raise awareness for your firm and more successfully pique their interest. Furthermore, a candidate’s contact with you will hasten the recruiting process; prospects who are familiar with you and your brand will move through the hiring funnel more quickly.
Focus on active and passive prospects
Hiring managers frequently prefer passive candidates to active job hunters. In a downturn, though, it’s crucial to keep in mind that many outstanding applicants may be unemployed, making them active job hunters. Your company will miss out on significant hiring possibilities if you overlook active prospects.
Also, keep in mind that active hires are more responsive, especially in a down economy where work chances may be few. As a result, an active applicant is more likely to be closed sooner than a passive candidate.
Don’t hinder business growth
During a recession, many businesses put their hiring efforts on hold. While putting all recruiting on hold may appear to be the most cost-effective decision, it may actually hurt your organization. While certain parts of your business may be shrinking, others are likely expanding and requiring additional personnel to keep up.
Instead, consider selective hiring, which allows you to employ for roles that will help your company succeed while putting non-essential tasks on hold. This will allow you to take advantage of a once-in-a-lifetime opportunity to acquire elite personnel while also propelling your company forward.
Think twice before doubling down on freelancers
Because of the current state of affairs, several businesses are turning to independent contractors rather than full-time employees. While this may be a necessary answer for some, don’t rely on freelancers to fill a full-time position without careful assessment.
What opportunities exist in a downturn?
Even the most ardent optimists must now recognize the reality: regardless of how one defines a recession, we are either in one or on the verge of one. We’re officially in recession in the UK, and there’s even talk of a depression. The news and media are full of doomsday projections and dreadful predictions, but for once, they’re all in agreement: the economy is awful, and it’s only going to get worse before we can even hope for a recovery.
Many people and corporations have had their heads buried in the sand for far too long, but even the strongest denialists have had to come to terms with reality, and what they’re seeing isn’t nice. Some people are in a condition of mild to severe panic, fearing that their businesses, plans, and way of life are doomed. Others argue that the media’s grasp of reality has elevated the concept of exaggeration to previously unseen levels. As is often the case, the truth lies somewhere in the middle.
Those expecting a recession to be a minor issue or threat are likely to be disappointed. There are other comparisons being used, but my personal favorite compares a recession to a tremendous storm. Those caught in one will surely be harmed, but the severity of their suffering could range from minor inconvenience to life-altering calamity. It depends on where you are, how long the storm lasts, how exposed you are to its impacts, and how much you stand to lose. The analogy is apt since, other from basic protection and preparedness, it frequently feels as if there are raging elements beyond your control.
However, it is not all doom and gloom, and there is plenty that can be done to not just survive, but perhaps even profit from the recession.
Despite all of the obvious negative effects of a recession, it can also be an excellent time to expand and develop your firm, as many of your competitors will most likely be doing the exact opposite. Despite the seeming fear, consumers and businesses continue to seek solutions to their problems; nevertheless, they may begin to look for greater value. If your product or service meets that need, this recession-fueled demand could become an opportunity for you.
The similar concept might be used to current clients and users. A smaller version of what you normally sell, as well as a cheaper and/or more basic version, can be appealing.
But why confine your analysis to existing markets? Other marketplaces are out there; you just have to look for them. Older people, for example, are less affected by recessions because their mortgages and loans have largely been paid off, and they are not typically salaried. Now would be a good time to tap into these users if there is a means to do so.
A recession can also provide opportunities for businesses to grow their market share, and those who have the bravery and insight to boost their marketing expenses will benefit in the long run. When a company’s income begins to decline, the natural reaction is to reduce spending. And the marketing budget is frequently one of the first to be cut. This is unquestionably a blunder.
Boarding up the windows and shutting off the lights when the number of customers entering your shop begins to decline is a terrible idea.
And, while we’re on the subject of optimism, don’t forget that a recession can shake up any firm. While this may be uncomfortable at first, it can eventually lead to more flexibility, better spending habits, and more creativity.
But, let’s be honest, this isn’t going to happen. You’ll feel ill for three days if you go to the doctor for an immunization and then spend three days shivering in bed as your body builds up resistance. However, recognizing that there is a light at the end of the tunnel can help you get through the pain in the near term.
And don’t forget the obvious: your company not only makes money but also spends it. In a desperate bid to boost revenue, several businesses are lowering prices, resulting in some fantastic offers on software, products, hardware, services, and more. As the economy worsens, don’t make the mistake of ceasing all spending. Spend with caution, make more informed decisions, and take advantage of the available savings.
It’s also a wonderful time to put money into your current supporters. It’s critical to keep their loyalty during these trying times, and a little kindness now could pay dividends in the long run. You already know that recruiting new clients is more expensive than keeping existing customers happy, but are you reassuring and impressing them now, while the going is still good?
Under no circumstances should you abandon plans for new products or services at this time. You could want to put a recession/savings spin on them, but new products and services are just as likely to be popular now as they were a year or two ago for many goods and services. Sales may take longer to come in, but spreading the word and developing a name takes time.
So much for theory and confidence. What should you be doing to ensure that you not only survive but but benefit from the recession?
Begin with your most important asset: your consumers. Now is the moment to learn more about who they are, where they came from, and how the recession may effect them. Now is the moment to establish a regular communication channel with them. And now is the moment to figure out what they want and how to meet those needs. Many small firms take a sloppy approach to invoicing their customers. This is precisely the type of problem you want to avoid during these times, aside from the fact that it is bad business practice. Allowing your customer’s inefficiency or unwillingness to pay on time to run rampant could lead to cash flow issues for your company. It’s a problem that can be difficult to fix, but it’s also one that can be avoided.
Threats or harassment aren’t necessary when encouraging clients to pay on time. However, invoices should clearly state payment terms, and clients should be aware that failing to pay on time would result in additional fees. Why should you be any different? They anticipate this from most of their other vendors, so why should you be any different? However, keep in mind that there’s no need to be overbearing. You certainly don’t want to lose a long-term customer. Make sure the balance is correct.
The next stage should be to think about any and all expansion options. New products or services, new licenses, new pricing models but while we’re on the subject of pricing, don’t just decrease rates to try to boost sales volume. It’s a way too simple plan that, in addition to risking a revenue reduction, can cheapen your company’s reputation and make you appear desperate. Customers require extra reassurance during a recession, so don’t make prospects wonder if you’ll be around in a few months.
And, despite my repeated pleas not to cut marketing budgets or discontinue spending, now is a good time to do so where it makes sense. Saving money on phone calls and utilities, for example, may be found with a little study, and for some businesses, cutting down on unneeded travel can also be a good way to save. All of this should have been done before the financial crisis, but as the phrase goes, better late than never.
However, don’t throw the baby out with the bathwater, as the phrase goes. Switching to a cheaper internet service provider to save a few bucks per month may turn out to be a false economy if your new connection is slow and unreliable. Reduce unnecessary spending, but don’t scrimp on quality.
The importance of cash flow cannot be overstated. Despite the fact that many small businesses believe that such notions only apply to larger corporations, cash flow can be the difference between a company’s survival and death. Using your accountant’s abilities or even software such as QuickBooks, you can get this information right now. Keeping track of cash flow is simple, easy to plan around, and could save your life.
If you anticipate short-term cash flow issues, don’t be afraid to take whatever steps are necessary. Even if your company has always been self-sufficient, borrowing money to fund critical expansion makes a lot more sense than failing to launch a promising endeavor.
Last but not least, a word of warning. Nobody knows how long the current recession will persist, or how our businesses will be affected in the months ahead. Even if your company is doing well or even thriving right now, there will be a lot of change ahead. Most new initiatives require time to develop and implement, so now is the time to take a look around, examine your options, and begin putting ideas into action.
Which industry is immune to the downturn?
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.
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.
Even in a downturn, how can I make my career more successful?
To be sure, it’s a difficult time, but here’s where two experts recommend you start.
- Spend time developing your network and making contacts rather than trying to sell something.
What is your best guess for the length of your job search?
“Receiving a job takes on average 3-6 months from start to finish, and you have an 8.3 percent chance of getting a job interview from one job application,” says Cidnye Work, a FlexJobs Career Coach.
What effect does where you reside have on your income?
Given that a small number of metro areas in the West and Northeast have the greatest earnings, we can expect a large number of individuals to relocate to these areas. 8 However, earnings are not the only factor that individuals consider when deciding where to live and work.
The lower cost of living in other parts of the country is one reason why many people opt to live and work outside of high-wage areas. A lower cost of living, which includes less expensive housing, food, education, transportation, and other products and services, allows the same dollar of pay to go further. A worker in a metro area with a low cost of living (for example, Dallas) would think twice about taking a marginally better-paying job in a metro area with a higher cost of living (e.g., San Francisco).
However, the cost of living in the San Francisco metro region is not expensive simply because the population is dense or because residents earn a high wage. Land-use limitations, for example, have contributed to drastically rising rents and property prices, restricting the number of people who can benefit from high-wage city employment prospects. 9 As a result, economic growth in the United States is limited, and income disparities exist across the country.
What does this entail in terms of individual employees? We can see how much higher or lower the cost of the same bundle of goods and services is in each location relative to the national average cost using the Bureau of Economic Analysis’ (BEA) regional pricing parities (RPPs). The RPP is generated using prices from the Consumer Price Index and housing rents from the American Community Survey; the RPP for each place shows how much higher or lower prices are in that location (in percent terms) than the national average.
Table 1 depicts 12 regions with similar yearly median wages ($40,505) but varying cost of living, demonstrating how much cost of living can vary across the country. The cost of living index of Santa Fe, New Mexico (0.2) is slightly lower than the national average. In comparison, the cost of living in AuburnOpelika, Alabama, is almost 15% cheaper than the national average, while it is nearly 4% higher in Atlantic CityHammonton, New Jersey. When adjusted for cost of living, $40,505 in wages in AuburnOpelika, Alabama, is worth $47,900, however the same $40,505 in Atlantic CityHammonton, New Jersey, is only worth $39,100.
Figure 4 displays the relationship between median annual earnings and the cost-of-living index by location and area.
10 Take note of the evident upward sloping relationship: better-earning places (the x-axis) have higher living costs (the y-axis). In fact, no region with a cost of living above the national average has a median income of less than $32,000, and no location with a cost of living below the national average has a median income of more than $50,000. The cost of living rises by one percentage point for every $1,000 in additional wages. Moving from a $40,000 to a $50,000 median pay locale, for example, would result in a cost-of-living index that is 10% higher, offsetting 44% of the additional compensation. In addition, metro areas in the West and Northeast have greater living costs than metro areas in the South and Midwest, as shown in the graph. After adjusting for cost of living, the highest salaries are found in the Northeast and Midwest.
While income taxes may not vary as much among countries as the cost of living, they are a significant factor to consider when comparing incomes. Variations in taxation, on the other hand, may be more difficult to interpret than differences in cost of living. High-tax states spend a portion of their surplus revenue on public assets that inhabitants appreciate, partially offsetting the burden of income taxes. Figure 5 plots unadjusted median annual wages versus earnings adjusted for both cost of living and federal and state income taxes by region, demonstrating the impact of these adjustments. 11 To be clear, this figure does not represent the whole extent of the local tax burden, which can be affected by sales taxes as well as the relative weight of income and property taxes. The figure shows a clear upward sloping association between locations with high unadjusted profits and locations with high adjusted earnings. However, the relationship is not one-to-one: taxes and the cost of living erode part of the greater wages. In other words, greater living costs and taxes lessen, but do not erase, high-wage cities’ labor market advantage.
During a recession, what do recruiters do?
Sullivan explains that during a recession, “a reduced hiring volume will allow your recruiters to focus on quality,” and that “a lower amount of requisitions will allow your recruiters to spend more time on top applicants and improve their candidate experience” (at least initially).