Hello! How are you doing? Did you have a good time over the weekend? Great! Let us now discuss recessions!
Above-the-fold headlines this week screamed about the magnitude of the impending recession in the United States. And it appears that we’re dealing with a significant amount of money. I reached out to Matt Sigelman, CEO of employment market analytics business Burning Glass Technologies, for some specific facts and outlooks on what this could imply for the normally bullet-proof software engineering job market.
As the U.S. drops into a pandemic-fueled economic downturn, we’re already seeing a lot of layoffs and hiring freezes in tech. Do we have any read on how software engineering jobs, in particular, are holding up?
Software developer jobs, like everything else, are suffering from the downturn, with hiring dropping across the board.
The public administration sector (-7 percent) and retail (-10 percent) have seen the smallest drops in software developer job openings, which makes sense given the demands placed on these industries during the pandemic. Hiring fell the highest in tech contracting organizations (-46%) and financial services (-42%). (-45 percent ).
For context, during the weeks of March 2 and March 30, all job ads in the United States plummeted by 43%.
How about a prognosis for how bad things could get in the coming months? Is there any truth to the idea that software engineering, programming, and developer jobs are more “recession-proof” than most?
One reason why software employment have remained “recession resistant,” if not recession-proof, is that this expertise has been so difficult to come by that corporations will be hesitant to give up on it if at all possible. Recessions come to an end, and when they do, you want to be ready with fresh items to capitalize on the opportunity. Employers’ reluctance to list software positions shows that they are also reluctant to build new products. This would have a significant impact on software jobs as well as the general recovery. The recovery will take longer if enterprises take longer to bring new items to market.
So much of the workforce that could be affected by the oncoming recession didn’t even exist a decade ago many software engineer jobs included. So does it make sense to look at the last financial crisis in 2008 for learnings on what’s ahead in this one?
Because the reasons of the two recessions are so dissimilar, it’s difficult to predict whether the recoveries will be as well. Employers are generally hesitant to hire after a recession. Employers do not simply rehire everyone who worked for them before to the slump. Instead, businesses confront hard questions like, “How many staff do we require?” How much of this labor could be automated or rearranged so that fewer people are needed? It’s understandable that businesses would prioritize recruiting employees with the most valued abilities in this situation. Those who are laid off should use the time on the sidelines to improve their abilities so that they are more competitive when hiring resumes.
Education and upskilling are popular go-tos in an economic downturn. In today’s world, a code bootcamp can seem as appealing a way as any to make a career pivot. If we see an onslaught of new software engineers hit the job market on the other side of this, will there be enough jobs for them?
The greatest approach to avoid a talent shortage of any kind is to carefully prepare how we will reskill Americans. The country’s biggest difficulty is redeploying and re-employing workers. We now have the resources to determine which training pays off and which career paths can lead workers from low-wage occupations to higher-wage positions. Importantly, politicians’ one-size-fits-all solutions, such as ensuring that everyone who has been displaced is trained in software development, lack the complexity and market expertise needed to succeed.
Burning Glass has outlined how this might work in the case of jobs lost to automation. Take a peek at our reskilling report for the World Economic Forum.
Are there other ways you think the software engineering job market could look differently after the economy regains its health?
Again, abilities are important. Employers will have many options in a Slack job market, so they will likely shift demand toward recruiting folks with skill in high-value technology.
Are software jobs immune to the recession?
Some generally secure employment alternatives are listed below. While they aren’t fully immune to a recession, they are among the better performing industries in terms of job stability.
1. Information Security Analyst
Cybersecurity is becoming increasingly valuable as firms move to remote working and expand their digital presence. The global cybersecurity labor deficit is estimated to be over 4 million people, according to the ISC (International Information System Security Certification Consortium). Due to a scarcity of security personnel, critical data and information are at risk. Because team members work remotely and have online access to sensitive information, a recession raises the danger.
In recent years, there have been a number of high-profile cases of data security breaches. Cognizant was hit by a ransomware attack that cost the company between $50 and $70 million. Zoom has been determined to have a lot of privacy concerns, which makes it more vulnerable to cyber-attacks.
A cybersecurity analyst’s job is assessing, planning, and implementing security methods to safeguard IT infrastructure and data. You can expect to make roughly $86,000 per year, and you won’t need a fancy degree to get started.
A cybersecurity profession will give you with a satisfying career for years to come if you have a passion for technology and an interest in vulnerability management. Enroll in our online cybersecurity bootcamp to learn everything you need to know to get started on the path to your ideal job. We’ll teach you how to use access control, network security, continuity management, and incident response to stay on top of the latest trends. Our professional term will also give one-on-one mentorship and coaching to assist you in achieving your objectives.
2. Administrator of the Cloud
The demand for cloud administrators is growing as more firms transition to cloud servers. A cloud administrator’s work include managing, updating, and maintaining cloud infrastructure. You’ll manage cloud services, subscriptions, storage, and resources in addition to providing technical support. Companies use the cloud to cost-effectively pilot digital strategies during a slowdown. To save money and save costs, they may even shift their entire system to the cloud. This shift in company strategy places a higher emphasis on cloud resource management. Cloud administrators will be in high demand in the post-slowdown situation, according to the International Data Corporation (IDC). Businesses are anticipated to continue to fund cloud deployments and may even expand their cloud initiatives proactively.
3. Software Architect
Jobs in software development are expected to expand by 21% by 2028, according to the US Bureau of Labor Statistics. A recession will undoubtedly limit this growth, but it will not totally stop it. While some businesses may struggle, others will pivot and need software engineers to help them develop digital products and services.
People’s buying patterns shift as an economic slump touches home.
They hunt for cheaper things online and order food for delivery rather than going to retail malls and eateries. During a recession, software engineers are needed to create innovative smartphone apps, websites, and e-commerce platforms.
You’ll need to master a programming language like C++, Java, HTML, JavaScript, PHP, or Python to work as a software engineer. You must also be naturally analytical and like problem-solving.
If you’re interested in this subject, we offer an online software engineering bootcamp that will teach you job-ready skills. The training was created by specialists in the field who know exactly what hiring managers are searching for. We’ll guide you through the program and help you obtain a high-paying developer job with a leading software organization. For additional information, please contact our course admissions team.
4. Expert in Artificial Intelligence
Artificial intelligence (AI) is a branch of computer science concerned with the development of intelligent computers capable of performing activities that would normally need human intelligence. During disturbances such as lockout and the present economic slump, the demand for AI specialists has not reduced.
According to a Gartner report from 2019, enterprise AI applications have increased by 270 percent in just four years. This has resulted in a demand for trained AI specialists that much outnumbers the current supply. AI applications may be found in practically every industry sector, indicating that the field has a lot of room to grow. From self-driving cars and smart kitchen appliances to sports analytics and digital ad optimization, the possibilities are endless.
5. Data Analyst
People are spending more time online than ever before as internet speeds improve and smartphone ownership continues to rise. Individuals leave a trail of data behind them when they browse the web, shop online, or use social media. Companies can use this information to make better business decisions and increase sales.
6. Architect for the Cloud
Cloud architects, unlike cloud administrators, are responsible for coordinating the cloud adoption process, developing the architecture, and creating a design that will guide the end result. You’ll also be in charge of bridging the gap between complicated business problems and cloud-based solutions. Several companies have already made significant investments in cloud-based services and platforms. Even in a downturn, others are expected to supplement those investments and fund existing deployments.
Financial Analyst No. 7
A financial analyst’s job is to do research and identify investment patterns. You’ll examine balance sheets, burn rates, and cashflow forecasts using your analytical skills. This aids businesses in promoting financial stability and long-term viability for their clients and employees. You’ll also make recommendations on risk management and investing methods.
Entry-level financial analysts can make an average of $61,971 per year, according to Glassdoor. After a few years of experience, you can expect to earn $106,751 a year as a quantitativeanalyst.
The demand for financial analysts can actually increase during a recession. There has never been a more critical time to review the financial health of businesses and assets. Enroll in our financial analyst bootcamp if you’re an analytical thinker who enjoys crunching numbers. This online course will teach you current accounting fundamentals, financial planning, STEEPLE and SWOT analysis, financial modeling, and advanced Excel abilities. Once you’ve completed the course, we’ll even assist you in finding work by providing interview preparation and referrals.
8. Technical Assistance
Tech support professionals are a lifeline for their customers and organizations. They troubleshoot and diagnose network issues, as well as install and configure gear and software. Every technical issue would cause a delay in corporate activities if IT specialists were not there. Technology consumption does not cease during a recession. Help desk and tech support personnel will always be in high demand, and their job security will be strong.
To handle the activities of this massive sector, a vast technological support infrastructure is necessary. Even after the present pandemic, there is considerable evidence of future growth.
Engineer, DevOps
A DevOps engineer is the fifth-best job in the United States, according to Glassdoor. DevOps has been embraced by a wide number of companies to increase collaboration between software development and IT operations. Engineers have become some of the most in-demand jobs in the IT world, because to the indispensible benefits of DevOps. The DevOps domain is expected to have a bright future, as more companies are willing to adopt this method.
Database Administrator (No. 10)
Database administrators are in charge of creating data systems and archiving critical enterprise data. Database design, SQL, data transfer, database optimization, backup and recovery strategies are all skills you’ll require. You’ll also collaborate closely with the cybersecurity team to ensure the security of classified information. From 2018 to 2028, the Bureau of Labor Statistics predicts a 9% increase in database administrator jobs. During a recession, this is unlikely to change drastically. During a downturn in the economy, data is still collected, saved, and managed.
Boost Your Job Security by Leveling-Up Your Skills
You can transfer into a recession-proof tech job if you’re in an entirely other industry. Even if you’re already working in one of the professions listed above, it’s still worthwhile to boost your earning potential and expand your skill set. You may raise your worth by investing in yourself and learning new talents on a regular basis. In a competitive employment market, this will help you stand out from the throng.
For more information on your potential employment options, see our IT careers blog.
Is there a demand for software engineers?
There has been an upsurge in demand for software engineers and programmers around the world in recent years. According to the US Bureau of Labor Statistics, employment in software development is expected to grow by 22% between 2020 and 2030. Each year, there will be roughly 189,200 opportunities for software engineers throughout the next decade.
However, there are insufficient graduates from current schools to meet this demand. As a result, businesses are having difficulty finding qualified computer scientists and engineers.
Is Aerospace Engineering a recession-resistant field?
Workers around the world are waiting for symptoms of an economic downturn, but instead of waiting for the next shoe to drop, now is the time to recession-proof your career by developing a relationship with a recruiter. This is especially true for engineers who have the skills to transfer from a hard-hit industry to one that thrives during a downturn. If you have the talent, you can use a recruiter to assist you leverage your skills to obtain a new job if the economy begins to sag. Even if you already have a job, it’s a good idea to build a relationship with a talent recruiter.
Thanks to Millennial smart collar workers who are good with their hands and have engineering degrees, the manufacturing industry reversed its decades-long slide in employment growth at the conclusion of the Great Recession. Talent flocked to SpaceX and Blue Origin, two space tourism enterprises aiming for the stars, as well as Tesla, an automotive company revolutionizing the driving experience. Manufacturing workers’ salary premium has increased for the first time in years, making the resurgent sector even more appealing. However, several alarming signs have emerged in 2019, indicating that the economy may face difficult times ahead.
Layoffs Triggering Recession Fears
Layoff is a painful word to read, and it’s an even more unpleasant event to go through. Although the unemployment rate in the United States (3.7 percent as of August) is near all-time lows, layoffs are spreading throughout the economy, particularly in manufacturing. According to Bloomberg, President Donald Trump’s trade battles are forcing manufacturers in Industrial America to cut expenses, reduce production, reduce hiring, furlough workers, and destroy employment.
Layoffs are on the rise, according to outplacement company Challenger, Gray & Christmas, with employers announcing 46 percent more layoffs in May than the previous month. And job losses aren’t restricted to the Rust Belt’s equipment makers. Elon Musk’s SoCal-based rocket business SpaceX stated at the start of the year that it was laying off 10% of its workers, or 577 jobs. Musk laid off over 1000 Tesla employees in yet another cost-cutting maneuver. Vector Launch secured more than $100 million to launch launch vehicles into orbit, but its 150 employees were surprised to learn in August that they had lost their jobs owing to a “major change in finance.” Downsizing procedures were implemented by Vector, Virgin Galactic, The Spaceship Company, and Stratolaunch, among other space travel organizations. Uber recently stated that it would lay off 435 individuals across its engineering and product divisions, after the elimination of 400 marketing positions.
Recession-Proof Engineering Jobs
There is much discussion over whether the United States is on the verge of entering an unavoidable recession, which is defined as two consecutive quarters of negative economic growth. However, as recent high-profile announcements demonstrate, corporations do not need to enter an official recession to initiate proactive layoffs in order to shore up their bottom lines. Manufacturing is particularly vulnerable to economic downturns, and corporations in the sector have proved that they will cut employees without hesitation. Engineers in the area, however, frequently learn that they may achieve success and stability by applying their abilities in a related, but recession-proof, field.
Although recession-resistant is perhaps a more accurate word, the term “recession-proof” is sometimes used to characterize jobs that are unaffected by a broad economic downturn. Aerospace and defense firms (think fighter aircraft, not spaceships) are said to be the least susceptible to US and global economic growth across industrial subsectors, according to financial analysts. The aerospace and military industry in the United States was the leading net exporter in 2017, with a net trade surplus of $86 billion. During the trade war, the US continued to devote resources to defense, spending $649 billion on the military in 2018. Defense spending does not follow the market, and even during recessions, there is rarely any political appetite to cut defense budgets. As a result, engineering jobs at defense contractors are a little safer than those at similar private enterprises that don’t rely on large government contracts.
Engineers are employed in a variety of industries, including aerospace and defense. Utilities have historically been thought to be more or less immune to economic downturns. Regardless of the economic condition, electricity demand remains essentially constant. People tend to pay their power bill even if they have to put off other payments. This is great news for electrical engineers, power systems engineers, and other grid experts.
Businesses are expected to move to AI and automation to save labor expenses, especially during a recession. In order to keep costs down, businesses are expected to invest in everything from floor-cleaning robots to self-driving food delivery vehicles and cashierless technology. Mechanical engineers and automation engineers will be needed to create, build, and maintain these advanced robotics, hence this presents prospects for them.
Working with a Recruiter
Career opportunities arise and close at the best and worst of circumstances. Even if you aren’t looking for a new job right now, it’s a good idea to develop a relationship with a recruiter who can assist you negotiate career transitions that may arise one, two, or even five years down the road. Recruiters are also especially qualified to assist engineers in making career changes. They are advocates who take the time to learn about your skills, pitch them to organizations, and secure interviews so that you can demonstrate your abilities and achievements. They can also help you get your foot in the door if you want to stay in your present field but shift to a new organization. Furthermore, because recruiters are paid by the employing organizations, you, the talent, will never have to dig into your own pockets.
Although no one can predict whether or not an economic downturn will occur, you may prepare yourself for whatever the future may hold by contacting a talent recruiter.
Are electricians immune to the downturn?
A financial storm is developing, and we’re on the verge of collapse. At least, that’s how it appears if you read the business press, watch TV, or talk to experts. Many other educated experts agree that the so-called signals of an approaching recession are unimportant, therefore the matter remains as elusive as ever. Whether the economy is poised to collapse or not, the aftermath will be a lot simpler if you have a steady job that doesn’t fluctuate with the Dow Jones index. Here are six trades that are anticipated to continue to grow regardless of the state of the economy.
Carpentry
Carpentry encompasses a number of different trades, many of which are tied to the construction industry. Apprenticeships in framing, cabinetry, trim work, ornamental woodworking, and other fields are available to young people. All of these fields are large and growing, with a rise in work possibilities of around 8% predicted between 2018 and 2028. While homeowners may not be willing to spend money on kitchen remodels if the economy tanks, they will require carpenters to maintain what they already have.
HVAC
Workers in the heating, ventilation, and air conditioning industry install and repair the ducts, furnaces, and cooling units that are required in practically every home. This field does well during bull markets, when many new houses are built, and it continues to perform well during bear markets, when everyone needs condenser repairs and improvements. These people may not require brand new equipment, but keeping the ones they currently have in good working order is critical throughout any economic slump.
Tiling/Flooring
New construction, remodels, and repairs to both residential and commercial structures require tiling and flooring work. Even during a recession, lower-cost flooring solutions, such as linoleum, have a greater impact on flooring contractors than leaving floors untreated. To work, flooring contractors often need a state-level license, but after that, they can expect a profit margin of 3 percent to 7% on every task.
Plumbing
The unsung heroes of modern society are plumbers. It’s almost embarrassing to think about the world without them because the work they do is so clear. Plumbers may expect to make $54,000 per year even in a devastated economy, with worse job and investment numbers than anyone is expecting for the United States in the near future, since this industry rises by 14% until 2028.
Electricians
Electricians hold a unique position among the trades, one that is unlikely to change in the face of a weakening economy. While many trades require a strong back and a willingness to roll up one’s sleeves every day, electrical work is complex enough to necessitate professionals who know what they’re doing and can’t be readily replaced. Housing development, commercial building upkeep, lighting and security system installation, and even the communications business all require electricians. Electricians can expect to earn more than $55,000 per year as a median pay grade for middle-rank individuals in the field, boom or recession.
Appliance Technicians
Washing machines, dryers, refrigerators, ovens, and other essential household equipment are all repaired by appliance experts. Given that the field isn’t on the point of decreasing, this field may be the most promising of them all. During a period of economic expansion, individuals are continuously purchasing new and extremely sophisticated gadgets, which will eventually require repair. Meanwhile, during a recession, consumers are hanging on to their older appliances for longer, necessitating the services of a repair technician even more. Because appliance technicians can work for large manufacturers, medium-sized repair organizations, or independently as contractors, they may have the most employment opportunities.
Whatever the economy’s future holds, there’s no better way to prepare for it than by learning the trades. These six in-demand industries are among the most likely to continue to expand in the years and decades ahead, regardless of how the economy evolves. Learning a trade at Generation T, which offers courses in all of these sectors and more, will help you prepare for anything the economy throws at you.
What industries are hit hardest by recession?
During recessions, goods and services with an elastic demand that either have many replacements or are not considered as necessity suffer the most.
What constitutes a recession?
When economic growth is negative for two consecutive quarters in most countries, a recession is formally proclaimed. It is declared by a panel verdict in other countries, such as the United States.
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.