The COVID-19 crisis has sent the economy into a tailspin and harmed a wide range of professions.
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.
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 types of jobs might withstand 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.
Prioritize lucrative and growing industries
The first step in obtaining work during a recession is to look for jobs in industries that are less affected by the slump. Some industries may not experience significant changes during a recession and may even experience growth as a result of the services or goods they supply. These are what you may call “growth industries” or “recession-proof sectors.” The following are some examples of growth or recession-proof industries:
How does the recession effect hiring?
The reduction in the number of vacancies has been the most significant effect of the recession on recruitment activity. As a result, nearly six out of ten (57%) of those polled have reduced their usage of job agencies. Temporary employees, outsourcing, and internal reorganization are among the alternatives to filling vacant positions with permanent hires that four out of ten (40 percent) have discovered.
Smaller businesses were also hit more by the recession’s recruitment effects, according to the data. Six out of ten (58%) small and medium-sized businesses (SMEs) had implemented workforce-wide recruiting freezes, compared to four out of ten (36%) of the largest businesses questioned. And redundancy freezes where the ‘natural wastage’ of resignations and retirements might reduce the need for compulsory layoffs were significantly more common among SMEs (47 percent) than among bigger firms (7 percent ).
This was also true in terms of vacancy and recruiting spending reduction, with one-fifth of SMEs having to reduce vacancies by more than 90%, but none of the larger companies questioned had to do so. In addition, 30% of SMEs have had to slash their recruitment costs by more than 90%, whilst none of the largest companies have had to take such dramatic measures.
Despite the pessimistic forecast, an Acas policy discussion paper suggests that a considerable number of jobs are still becoming available. According to the report, Jobcentre Plus alone advertises 10,000 new jobs per day, with many more available through other sources.
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).
Medical professional
Within the medical field, there are numerous vocations and specialties. This group includes Registered Nurses (RNs), pharmacists, physicians, surgeons, paramedics, dentists, dental assistants, and even veterinarians. People and animals become ill regardless of the economy, thus they will always require the assistance of trained professionals.
Specialized care, therapy, and counseling
Consider elder care, physical therapists, occupational therapy, substance-abuse counseling, chiropractic treatment, home health aides, mental health specialists, social workers, and other professionals who operate in this field. People place a high importance on their health. They will spend money on services that will help them to be productive while also being pain-free. Some of these services are covered by insurance, encouraging consumers to use them even when they are short on cash.
Law enforcement officers
The specific link between crime and economic cycles is difficult to pin down. Some crimes predict a downturn, while others coincide with it, and still others show no link at all. Communities prefer to invest in physical safety for local companies and citizens in any economic scenario, which means that police officers and the professionals who support them are in high demand even during a downturn.
Public utility services
During economic downturns, electric, water, sewage, waste, trash, and recycling services all continue to operate. Utility personnel, after all, are essential to ensuring public order and health. Surprisingly, consultants that serve those utilities appear to get the same benefit. Many cities, for example, are obligated to undertake annual audits of their trash-collection companies. Even in a down economy, consulting businesses that undertake such audits will have work to do.
Financial services
The importance of money mobility explains why financial specialists are always in demand. Accountants, auditors, actuaries, claims adjusters, tax preparers, and insurance underwriters are just a few of the employment available in the financial services industry. Many jobs necessitate professional certificates such as Enrolled Agent (EA), Certified Public Accountant (CPA), or Certified Financial Analyst (CFA) (Chartered Financial Analyst).
Education services
Economic booms come and go, but putting money for the future is always a good idea. Regardless of the economy, jobs in primary education, secondary school, higher education, special education, and adult education are in high demand. Those interested in following this path should be aware that the method education is given is changing. New types of distant and on-demand education are becoming more relevant in addition to traditional classroom educators. As a result, a teaching career might be flexible in terms of both location and delivery manner.
Looking for a job that is recession-proof? A skilled resume writer can reframe your experience in order to help you advance in your job.
How long does the average recession last?
Since 1857, the average length of a recession has been less than 17.5 months. Since the days of the Buchanan administration, recessions have been shorter and less severe. The long-term average includes the 1873 recession, a 65-month kidney stone of a dip. The Great Depression, which lasted 43 months, is also included.
Recessions have gotten less severe in the years since World War II, lasting an average of 11.1 months. Part of this is because, owing to the Federal Deposit Insurance Corporation, bank failures no longer result in the loss of your life savings, and the Federal Reserve has gotten (somewhat) better at managing the country’s money supply.
The Great Recession, which lasted 18 months from December 2007 to June 2009, was the longest post-World War II recession. The two-month Pandemic Recession, on the other hand, contributed to a reduction in the average length of recession.
In a downturn, how do you make money?
During a recession, you might be tempted to sell all of your investments, but experts advise against doing so. When the rest of the economy is fragile, there are usually a few sectors that continue to grow and provide investors with consistent returns.
Consider investing in the healthcare, utilities, and consumer goods sectors if you wish to protect yourself in part with equities during a recession. Regardless of the health of the economy, people will continue to spend money on medical care, household items, electricity, and food. As a result, during busts, these stocks tend to fare well (and underperform during booms).