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.
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.
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.
What types of occupations did the recession eliminate?
The Bureau of Labor Statistics (BLS) declared in April 2014 that the number of private-sector jobs in the United States has finally recovered to its 2008 peak six long years and an agonizingly slow four-year recovery. According to a 2013 analysis from the Congressional Research Service (CRS), unemployment was only 4.4 percent in October 2006, but had risen to 10% by 2009. It has recently reduced to 6.7 percent, but openings can still be difficult to come by. Many groups have been heavily impacted, ranging from veterans to recent college grads, and job searches for the long-term unemployed can drag on indefinitely.
The US economy is predicted to add 200,000 jobs every year, but those added will not necessarily be the same as those lost six years ago. The labor market in the United States has been significantly recomposed as a result of ongoing technical and economic transformation, including computerization and outsourcing. According to a 2013 study by Duke University and the University of British Columbia, middle-income occupations are rapidly vanishing during recessions.
“The Low-Wage Recovery: Industry Employment and Wages Four Years into the Recovery,” a 2014 analysis of BLS data by the National Employment Law Project (NELP), looks at the types of employment that were lost during the recession and those that have been added since the recovery began. The BLS’s Current Employment Statistics (CES) and Occupational Employment Statistics (OES) surveys provided the source data. The OES provided pay data, which is based on median estimates rather than averages, which can be skewed by higher-paid employment within certain industries.
- While the US economy has recovered to the number of private-sector jobs it had in 2008, the gains and losses have not been evenly distributed: 1 million jobs were lost in high-wage industries, whereas 1.8 million were added in low-wage industries. The effects of the recession vary widely, as indicated in the graph below, but overall, losses were greater in high-wage jobs and growth was stronger in low-wage jobs.
- Lower-wage industries were responsible for 22% of job losses during the recession, but 44% of job gains since the recovery began. During the recession, the lower-wage sector lost 2 million jobs, but has subsequently added 3.8 million.
- Food-service work, which pays the least of the low-paid jobs with a median hourly wage of $9.48, grew the most: While the recession resulted in the loss of 367,000 jobs, 1.2 million have been gained since then. Overall, the sector now employs 9% more people than it did before the recession.
- Health and education are two other low-wage growth industries: “This was the only industry to add jobs during both the downturn and the recovery, bringing employment nearly 13 percent higher than it was at the beginning of the recession.”
- Mid-wage industries accounted for 37% of job losses during the recession, but just 26% of new jobs since then. There are roughly one million fewer such employment presently than there were in 2008. Services provided by local governments were particularly heavily hit, and they have yet to fully recover.
- Higher-wage industries lost 41% of jobs during the recession, but only 30% of new jobs were created. 3.6 million jobs in higher-wage industries including accounting, legal work, and construction were lost during the recession; just 2.6 million jobs have been added since then.
- The high-wage professional, scientific, and technical services industries saw significant job growth through March 2014, adding more than 800,000 jobs occupations like accountants, legal professionals, software developers, and engineers. “While significant job growth in this higher-wage industry is a welcome trend, employment growth is nearly six percentage points lower than it was at a similar stage following the 2001 recession,” says the report.
- While there has been some recovery in construction, manufacturing, transportation, and related occupations, the recession losses were so large that they are only now returning to pre-recession levels construction employment is still 20% below its 2008 peak, for example, and food and textile manufacturing employment is still 11% below its pre-recession peak.
- “Over the last four years, private-sector increases have been somewhat offset by job losses in the public sector as a result of federal, state, and local budget cuts. During the recovery era, net employment losses totaled 627,000 across all levels of government. Education absorbed over three-quarters of the 378,000 net job losses over the last four years, which was particularly severe at the municipal level.”
- The job losses and gains in the 2001 and 2008 recessions were quite different: After the 2001 recession, 39 percent of the gains were in lower-wage industries, 20 percent in mid-wage industries, and 40 percent in higher-wage industries. Growth has been concentrated in low-wage and some mid-wage industries since the 2008 recession, but higher-wage growth has been significantly weaker.
In an interview with the New York Times, the study’s author, Michael Evangelist, said: “Fast food is driving the bulk of the job growth at the bottom end – the job gains there are just phenomenal.” If this is the case if these occupations are here to stay and will account for a significant portion of the economy the issue becomes, “How can we make them better?”
Recession, unemployment, inequality, financial crisis, jobless recovery, outsourcing, and computerization are some of the terms used to describe the situation.
What industries do best during a downturn?
- While some industries are more vulnerable to economic fluctuations, others tend to do well during downturns.
- However, no organization or industry is immune to a recession or economic downturn.
- During the COVID-19 epidemic, the consumer goods and alcoholic beverage sectors functioned admirably.
- During recessions and other calamities, such as a pandemic, consumer basics such as toothpaste, soap, and shampoo have consistent demand.
- Because their fundamental products are cheaper, discount businesses do exceptionally well during recessions.
Who does a recession usually affect?
17951), co-authors Hilary Hoynes, Douglas Miller, and Jessamyn Schaller found that the Great Recession (December 2007 to June 2009) had a bigger impact on men, black and Hispanic workers, young workers, and workers with less education than other workers.
Which state was hardest damaged by the economic downturn?
California lost 890,700 jobs during the course of the decade, or 6.06 percent of its 2000 employment level. California also lost the most employment during the recession of 2008-2009. (1,371,200 jobs).
What industries made it through the 2008 financial crisis?
Small businesses benefit from TeamLogic IT’s IT solutions and consulting services. Surprisingly, during times of uncertainty, such as the 2008 recession, the IT business has grown.
Because consumers are becoming increasingly reliant on newer technologies, this industry often does well during economic downturns. From our security to our enjoyment, technology has an impact on practically every aspect of our lives.
If you wish to start a firm, you should think about how well that industry has performed through periods of economic uncertainty. Tech, cheap stores, accounting, food, healthcare, and DIY/repairs are all doing well.
Netflix
“Of course Netflix survived the 2008 recession; it’s a gigantic corporation,” you would assume.
In reality, around the time of the Great Recession, Netflix launched a new product (the streaming service) in response to the demise of video rental outlets.
The company then continued to work on agreements with organizations such as Xbox in 2008 and 2009 so that customers may stream through such devices.
During the economic slump, it was thanks to these advances that the company was able to continue to thrive. During the 2008 recession, they actually increased memberships and subscriptions as other businesses struggled to stay afloat.
Furthermore, the year 2008 was not the first time this organization experienced a downturn. Netflix was formed before the dot-com boom burst in the early 2000s, so it had to weather the storm.
During this time, the brand experimented with new ways to appeal to their audience, whether it was through the introduction of new products or the expansion of existing ones through partnerships and collaborations.
Citigroup
The Federal Reserve performs stress tests every year to determine how much capital banks would have if they suffered significant losses.
Citigroup’s assets increased in 2014, making it one of the few banks to do so since the 2008 financial crisis.
Because they concentrated on branding and providing quality services, this bank grew in the aftermath of economic turmoil when others did not. Citigroup began to fund various community services, which aided in the development of their brand story.
In truth, marketing played a significant part in Citigroup’s capacity to recover from the 2008 financial crisis.
Lego
Lego is an intriguing case study since you may believe that toys, amusement parks, and play centers are unimportant, thus an economic downturn would have little impact on the business.
During the 2008 recession, however, Lego made the decision to grow into a global market.
While the United States was experiencing economic difficulties, the corporation focused its efforts on growing income in Europe and Asia.
During a recession, the corporation was able to achieve an all-time high profit margin by doing so. When its core market was experiencing a downturn, this company had the foresight to extend to worldwide markets.
Groupon
“Of course they survived an economic downturn,” you would think of Groupon as another company.
In 2008, though, Groupon was still a startup. In reality, the business began operations in the midst of the Great Recession. What is causing this?
Surprisingly, entrepreneurs do well during recessions since they typically meet a demand and may spend less money due to discounted prices.
During recessions, discounts are in high demand because people are looking for ways to save money wherever they can. Discounts provide consumers with a means of surviving a recession, which is why bargain retailers do well during periods of economic uncertainty.
Mailchimp
Mailchimp has been operating for nearly two decades and has weathered various economic storms. The company survived both the 2001 economic slump (when it was created) and the 2008 recession.
So, how did the brand survive and thrive in the midst of a downturn? Well, the company was created amid the 2001 financial crisis and prospered as a result of it.
The company was able to survive in 2008 because they modified their entire business approach. They switched to a freemium model, and their revenue skyrocketed.
During a recession, many clients wanted to use Mailchimp since it was free. The brand was able to develop by adapting to the times and offering a free product, and they’ve stuck to that business model ever since.
Warby Parker
Another company that was formed during the Great Recession is Warby Parker. What was the secret of their success throughout this period? They filled a massive void in the market.
While you might believe that starting a business during a recession is a bad idea, it’s actually a fantastic time to spot market gaps and pain points and fill them.
When Warby Parker recognized it was difficult to get a cheap pair of attractive glasses online, they took action.
Customers showed up even if they weren’t spending a lot of money because they met a need. Customers required an affordable glassware solution, therefore the company was marketed as affordable (which was necessary during the recession).
Even if your firm isn’t as large as these, keep in mind that many enterprise businesses today began during a recession.
Microsoft, for example, was founded following the 1970s recession. Following the economic slump of September 11, 2001, Apple relaunched its brand with new products and investments.
The global economy has always been robust, and periods of uncertainty have always passed. Although the economy will rebound, it is critical for your firm to be prepared in the event of a financial crisis.
These businesses were successful because they sought out new opportunities, expanded into new markets, adapted existing offerings, developed new products, and provided consumers with a cost-effective option. In the next economic slump, innovation and creativity can help you prosper.
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.