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.
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 there jobs that are recession-proof?
While no job is guaranteed to be recession-proof, there are some occupations that appear to be safer than others. Actuaries, debt collectors, auditors, and repossession agents are a few more professions that may be less affected by a recession, or even “recession-resistant.” There are a few recession-proof enterprises to think about as well.
The truth is that securing your employment is not a simple task. Recessions can cause anxiety and tension. Being prepared and observant are two of the best things you can do. If you’re concerned about losing your work, be proactive and take the measures necessary to move into one of these recession-proof jobs now.
What industry is the most stable?
Several people are looking for a new job they can hold on to for a while, as a result of record-breaking layoffs across many industries as a result of COVID-19. People may be more willing to take a chance on a fresh, fledgling company or a “cool” field in a healthy employment market because they know that if things go wrong, another job is only around the corner. However, in today’s harsh employment market, businesses that provide good job securityincluding ones you may not have considered beforemight become the “coolest” of all. Unemployment rates, industry or occupational growth, and “work tenure” are three major criteria that influence which industries or occupations have the most job security.
Management (5%), computer and mathematics jobs (4.4%), legal (2.8%), and healthcare (3.8%) are the occupations with the lowest unemployment rates, according to the Bureau of Labor Statistics, which is part of the US Department of Labor. (Many positions with better job security need more education, so continuing your education may be a good option if you wish to have a more secure career in the future.)
When an industry expands rapidly, it can lead to increased job security. The average industry growth rate is 0.5 percent, although healthcare, along with computer systems, software, and data or information-related areas, education, and professional/scientific and technical services, has been one of the fastest growing industries (at 1.6 percent) for many years.
Finally, consider “job tenure,” or how long someone have worked at the same company. The average job tenure is 4.2 years, but some industries have substantially longer tenures, such as manufacturing, telecommunications, government, and utilities. Following are some industries and vocations that may offer the best job security based on these three variables.
Healthcare has long been one of the fastest-growing industries, with healthcare jobs accounting for more than half of the top 20 fastest-growing occupations, including entry-level jobs like health aides as well as jobs that require extensive training like nurses, physician assistants, and physical therapists. Over the next several years, the global pharmaceutical market is predicted to rise by 3-6 percent. Healthcare demands will, sadly, continue to rise as the population ages and people are exposed to the long-term health effects of COVID-19. Exploring your job alternatives in the healthcare and health-related areas might help you choose a long-term career path that you enjoy.
Pfizer: Pfizer is a leading pharmaceutical company in the world. Medicines and vaccines, as well as several of the world’s most well-known consumer health care goods, are all part of Pfizer’s global portfolio.
Roivant is a tech-enabled biopharmaceutical business whose mission is to enhance healthcare by providing new medications and technologies to patients quickly.
GSK:GSK is a global healthcare firm that researches, develops, and manufactures novel pharmaceutical medications, vaccines, and consumer healthcare products.
Government employment encompasses a wide range of positions, including K-12 teachers in public and charter schools, police and firefighters, policy analysts, diplomats, librarians, parks department employees, public health professionals, scientists, and others. Government can be a rewarding field to consider if you enjoy assisting your fellow citizens. Because governments cannot often declare bankruptcy, government positions are more likely to have union protection, and many of the jobs are deemed necessary for a functioning society, government is considered one of the most stable employment sectors.
Governments can still have layoffs (sometimes known as “force reductions”), and large-scale budget cuts owing to tax revenue losses might result in layoffs in the sector. When there is a decrease in force, however, impacted employees may be given first priority for a new job within the government. Workers in the public sector had a median job tenure of 6.8 years, which was significantly longer than most, with federal agency employees having the greatest tenure at 8.3 years. Despite the fact that the government sector is not increasing as quickly as other businesses (federal government employment is predicted to decline by 0.5 percent through 2028), many government personnel are expected to retire in the future years, resulting in job openings.
Telecommunications, insurance, utilities, energy, logistics, and transportation are industries that will never go out of style.
Whatever happens, certain things will always be required. Electricity, internet access and cell phone service, insurance, and goods transportation are unlikely to disappear overnight, which may explain why personnel in utilities, telecommunications, finance & insurance, and energy (mining/oil & gas extraction) have longer tenure than the average. While you may not have considered insurance, logistics, energy, or telecommunications before, these areas provide numerous options for students of all backgrounds, from liberal arts to engineering.
PURE Insurance is a member-owned, purpose-driven business that provides comprehensive property and casualty insurance to high-net-worth individuals.
Baker Hughes is a major energy technology business that develops, manufactures, and services innovative technologies that help the energy industry progress.
XPO Logistics: XPO serves the world’s most successful enterprises with cutting-edge supply chain solutions.
Ericsson: As the world’s leading provider of 5G and telecom technology, Ericsson is the preferred partner of AT&T, Verizon, and T-Mobile.
While job security in technology firms isn’t perfectthe industry is always evolving, there are a lot of startups, and workers need to keep their skills up to date to be employedthe field’s rapid development ensures that positions will continue to be accessible for people with the necessary talents.
Information security, statisticians, mathematicians, and software engineers are among the fastest-growing careers in the tech or data areas. Many organizations in the IT industry overlap with some of the other stable industries on this list (such as healthcare), making it a fantastic industry to look into for both technical and non-technical roles (such as software engineer or data scientist) (such as customer success or HR).
Palo Alto Networks: Palo Alto Networks is the world’s leading cybersecurity company, building the cloud-centric future with technology that is changing the way people and businesses function.
Esri: By combining the science of geography with the technology of GIS, Esri technology gives meaning to maps.
Qualtrics is a leading experience management platform that enables businesses to gather and act on customer, product, brand, and employee experience data all in one place.
No employment is ever really secure in our ever-changing environment. However, examining industries based on growth, unemployment rates, and job duration can help you boost your chances of work stability. Data can help you narrow down your search, and you should have an open mind as you learn about different industries and what they have to offer.
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.
Which occupations will be in high demand in the future?
Data science is used in nearly every industry to evaluate huge data, improve company, and better serve customers. While data collecting may become automated in the next years, specialists who understand, identify, and implement a data-driven solution will continue to be in demand. These reasons have been pushing the demand for data scientists at the highest levels in our technology-driven environment.
Are teachers immune to the recession?
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.