During a downturn, it’s more necessary to concentrate on companies and job-specific talents than on a job title. This is because the responsibilities you’re capable of performing may not correspond to the professional title you’re used to. You might be able to uncover a larger number of job openings if you examine different job titles.
To do so, look for firms that are hiring people with your specific skillset. Even if the job title doesn’t seem like a good fit for you, read job descriptions attentively to learn about the role’s precise daily activities and responsibilities.
Look to other fields
Consider seeking for jobs outside of your field if your career or industry does not prosper during a recession. You can more quickly locate roles you’re qualified to fill in a new industry if you understand your transferrable abilities and expertise. While making a total career change can be difficult, knowing what you have to offer other jobs will help you apply with more confidence and strategy.
Create an action plan
You can clarify your professional goals and organize your job search and application activities with an action plan. You might, for example, define the values you want your next workplace to uphold, or make a plan for how many job applications you’ll submit each week. Consider every part of your strategy, and make sure to spell out each step so you know exactly what you need to do.
Contact your professional and personal network
When there is an ongoing recession, it is often beneficial to contact people in your professional or personal network, as these people may be aware of job openings that are not publicized online. You can utilize personal and professional social media to indicate that you’re looking for new work. It’s also a good idea to use this time to extend your network, since you might be able to help someone else who is seeking for job in the future.
Write a strong cover letter and resume
When job chances are scarce due to the recession, it’s critical to write a great cover letter and CV to set yourself apart from other applicants with similar qualities. A cover letter is a document that goes with your resume to assist you express your interest in a position and explain why you are qualified.
Your CV should highlight your professional experience, talents, and accomplishments. Technical skills, such as computer programs and extra languages that you are comfortable with in the office, can also be listed on your resume.
Consider temporary work opportunities
Temporary jobs are only available for a set period of time and may have limited job duties. You can apply for temporary jobs with temporary staffing agencies, which evaluate candidates’ skills and qualifications before matching them with an organization looking for temporary workers.
The length of a temporary employment will likely vary based on the firm and the work you’ll be doing, but doing well at a temporary job might help you develop your professional network, which may help you find full-time work in the future.
Pursue freelance work
Freelance employment can be lucrative, but it may necessitate some planning ahead of time. The basic purpose of freelancing employment is to offer a one-of-a-kind product or service that clients value enough to return. Whether you start producing jewelry at home or transcribing audio recordings, it’s critical to make sure your financial returns outweigh the expense of establishing your new freelancing business, as this will allow you to start making money as soon as feasible.
Relocate to an area with more job opportunities
Depending on the work chances in your current location, it may be necessary to relocate to a location with more diverse professional opportunities. This is especially true if the job you seek is difficult to find or is not accessible in your area.
If you wish to work as an information technology consultant, for example, you could find that there are more opportunities in big cities than in tiny rural villages. To find out which states or locations employ the most people in your sector, check tools like the US Bureau of Labor Statistics.
Is it difficult to find work during a recession?
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.
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.
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.
During a recession, what jobs are at risk?
The advent of artificial intelligence and automation will coincide with the next recession, putting all occupations that a computer or robot can do faster and better in jeopardy. “If organizations can utilize cheaper software and robotics to complete tasks faster and more correctly, it will surely effect people’s job security,” says Yaniv Masjedi, chief marketing officer of corporate communications provider Nextiva. Jobs in manufacturing plants, secretarial functions, inventory management, and responsibilities in the food preparation and service business are among the most susceptible, according to Masjedi. “Because these tasks are highly repetitious,” Masjedi says, “automation can replace such a workforce with robots that can duplicate the movements with 99 percent accuracy, greatly lowering the danger of failures and error.” “Health crises like as pandemics have no effect on robots or software programs, making it an even more realistic alternative for corporations that wish to maintain operations without endangering anyone’s health.”
During a recession, who benefits?
Question from the audience: Identify and explain economic variables that may be positively affected by the economic slowdown.
A recession is a time in which the economy grows at a negative rate. It’s a time of rising unemployment, lower salaries, and increased government debt. It usually results in financial costs.
- Companies that provide low-cost entertainment. Bookmakers and publicans are thought to do well during a recession because individuals want to ‘drink their sorrows away’ with little bets and becoming intoxicated. (However, research suggest that life expectancy increases during recessions, contradicting this old wives tale.) Demand for online-streaming and online entertainment is projected to increase during the 2020 Coronavirus recession.
- Companies that are suffering with bankruptcies and income loss. Pawnbrokers and companies that sell pay day loans, for example people in need of money turn to loan sharks.
- Companies that sell substandard goods. (items whose demand increases as income decreases) e.g. value goods, second-hand retailers, etc. Some businesses, such as supermarkets, will be unaffected by the recession. People will reduce their spending on luxuries, but not on food.
- Longer-term efficiency gains Some economists suggest that a recession can help the economy become more productive in the long run. A recession is a shock, and inefficient businesses may go out of business, but it also allows for the emergence of new businesses. It’s what Joseph Schumpeter dubbed “creative destruction” the idea that when some enterprises fail, new inventive businesses can emerge and develop.
- It’s worth noting that in a downturn, solid, efficient businesses can be put out of business due to cash difficulties and a temporary decline in revenue. It is not true that all businesses that close down are inefficient. Furthermore, the loss of enterprises entails the loss of experience and knowledge.
- Falling asset values can make purchasing a home more affordable. For first-time purchasers, this is a good option. It has the potential to aid in the reduction of wealth disparities.
- It is possible that one’s life expectancy will increase. According to studies from the Great Depression, life expectancy increased in areas where unemployment increased. This may seem counterintuitive, but the idea is that unemployed people will spend less money on alcohol and drugs, resulting in improved health. They may do fewer car trips and hence have a lower risk of being involved in fatal car accidents. NPR
The rate of inflation tends to reduce during a recession. Because unemployment rises, wage inflation is moderated. Firms also respond to decreased demand by lowering prices.
Those on fixed incomes or who have cash savings may profit from the decrease in inflation. It may also aid in the reduction of long-term inflationary pressures. For example, the 1980/81 recession helped to bring inflation down from 1970s highs.
After the Lawson boom and double-digit inflation, the 1991 Recession struck.
Efficiency increase?
It has been suggested that a recession encourages businesses to become more efficient or go out of business. A recession might hasten the ‘creative destruction’ process. Where inefficient businesses fail, efficient businesses thrive.
Covid Recession 2020
The Covid-19 epidemic was to blame for the terrible recession of 2020. Some industries were particularly heavily damaged by the recession (leisure, travel, tourism, bingo halls). However, several businesses benefited greatly from the Covid-recession. We shifted to online delivery when consumers stopped going to the high street and shopping malls. Online behemoths like Amazon saw a big boost in sales. For example, Amazon’s market capitalisation increased by $570 billion in the first seven months of 2020, owing to strong sales growth (Forbes).
Profitability hasn’t kept pace with Amazon’s surge in sales. Because necessities like toilet paper have a low profit margin, profit growth has been restrained. Amazon has taken the uncommon step of reducing demand at times. They also experienced additional costs as a result of Covid, such as paying for overtime and dealing with Covid outbreaks in their warehouses. However, due to increased demand for online streaming, Amazon saw fast development in its cloud computing networks. These are the more profitable areas of the business.
Apple, Google, and Facebook all had significant revenue and profit growth during an era when companies with a strong online presence benefited.
The current recession is unique in that there are more huge winners and losers than ever before. It all depends on how the virus’s dynamics effect the firm as well as aggregate demand.
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.
Who is the hardest hit by a downturn?
Rising unemployment, dropping property values, and the stock market decline all had an impact on those approaching retirement, either directly or indirectly. Furthermore, many elderly persons who were not directly impacted by the recession had children or other relatives who were. For many older persons, the recession’s financial difficulties resulted in changes in wealth and spending patterns, as well as physical and mental health issues with long-term effects.
How does the recession affect hiring?
The most visible effect of the recession on businesses is that they are hiring less and laying off more people. Indeed, according to the latest CIPD/KPMG Labour Market Outlook survey, the labor market will continue to contract in the coming quarter, as the number of firms planning layoffs will continue to outnumber those preparing to hire. Furthermore, a third of businesses are still on a hiring freeze. It appears that all sectors of the economy, as well as younger and older workers, are suffering. For the first time since the survey began in 2004, the net employment intentions figure is now negative for all three major sectors – private, public, and voluntary. At the time of the study, John Philpott, the CIPD’s chief economist, said: “We’ve always predicted that the worst of the recession will hit the job market in the first half of 2009, and unfortunately, we’re already seeing plenty of evidence to back us up. It’s unsurprising that the private sector has taken the brunt of the damage. But, for the first time, there is indication that the public sector is beginning to feel the pinch.” School leavers and graduates are also in difficulty, with 45 percent of firms stating that they will not hire from either demographic, and one in seven employers stating that they will not hire workers aged 65 and older who are not currently employed.
Good talent is hard to find
Ruth Elwood, KPMG’s head of recruiting, said that while recruitment volumes at the professional services firm have decreased in the last year, it remains active in both the graduate and experienced hiring sectors. “Our focus has always been on bringing the greatest calibre personnel into our firm,” she adds, adding that the downturn hasn’t changed her mind. “However, there is clearly a broader pool from which to choose, making our selection tools all the more important in identifying persons with the necessary talents for this current climate and our future operations.” Another effect of the recession on recruitment is that many companies are having difficulty finding quality candidates, partly because there are suddenly many more CVs to sift through from a larger pool of candidates who have been laid off, and partly because they cannot afford to waste valuable time and money on the wrong candidate. “In today’s economic context, the risk of making the incorrect choice has never been higher,” says Christine Raynaud, CEO of Hudson, a recruitment and talent management firm. “With candidate numbers skyrocketing and the war for talent morphing into a hunt for talent, hiring decisions are more difficult than ever before. Good selection processes are essential for reducing the risk of a company’s employment decision.” Employers must therefore improve their ability to identify the best personnel by employing efficient screening processes. “Improving selection screening is critical, and organizations must be clear on the skills and competencies they require in new workers today more than ever,” Elwood says. “In this climate, getting approval to fill a position is more difficult than ever, and the expected return on investment of a hire is higher than ever, so an employer must thoroughly understand the function and their company’s needs to guarantee they choose the most capable and eligible individual.”
The right person for the job
Employers want to be more certain about bringing the right people into the business, according to Matthew Parker, group managing director at recruitment software provider StepStone, but he adds that the other big issue is finding that talent because they are the ones who aren’t looking for work right now. “Where there is potential, people are far less inclined to relocate now than they would have been a year ago,” he argues. “As a result of the enhanced attention on talent management and succession planning, there is a great deal more quality retention going on in many organizations.” This, he claims, causes friction in the job market since the market is becoming thinner while expectations are increasing, and the two are intertwined. “There is no doubt that there are exercises going on right up to the top level of organizations that highlight what their most significant jobs are and who their most essential people are, and making sure those individuals are on board and part of the retention strategy,” Parker adds. So, has the recession had a direct influence on recruitment prospects in the coming years? “Because the forecast is still uncertain,” Elwood recommends, “it is critical for all employers to establish a solid resourcing model that is related to realistic company and market development, and to assess it frequently in light of these changes.” According to Parker, HR has the potential to become synonymous with value-add. “Now that HR is under pressure to do more with less, I believe technology will play a bigger role in recruitment and retention, as well as performance management, succession planning, and so on.” In addition, more creative avenues, such as social networking, will be used. Furthermore, as a result of the recession, the strategy of developing long-term connections with employees and potential recruits is expected to intensify. “The internet and online media in all of its manifestations will become the de-facto way for organizations wanting to recruit and retain employees,” he adds.