A position in the medical industry, whether you’re a doctor, physician assistant, nurse, or radiographer, is an excellent location to work during a recession.
What is going on in the economy has no bearing on our physical or emotional wellness. Even in a downturn, people will become unwell. Appendixes will break, babies will be born, and accidents will occur.
If you want the most employment stability, a career at a hospital or clinic is a good option. People will get sick and injured, regardless of what happens in the stock market or with GDP growth. They will require medical attention. Many recession-proof occupations are available in the healthcare business.
What opportunities exist in a downturn?
Even the most ardent optimists must now recognize the reality: regardless of how one defines a recession, we are either in one or on the verge of one. We’re officially in recession in the UK, and there’s even talk of a depression. The news and media are full of doomsday projections and dreadful predictions, but for once, they’re all in agreement: the economy is awful, and it’s only going to get worse before we can even hope for a recovery.
Many people and corporations have had their heads buried in the sand for far too long, but even the strongest denialists have had to come to terms with reality, and what they’re seeing isn’t nice. Some people are in a condition of mild to severe panic, fearing that their businesses, plans, and way of life are doomed. Others argue that the media’s grasp of reality has elevated the concept of exaggeration to previously unseen levels. As is often the case, the truth lies somewhere in the middle.
Those expecting a recession to be a minor issue or threat are likely to be disappointed. There are other comparisons being used, but my personal favorite compares a recession to a tremendous storm. Those caught in one will surely be harmed, but the severity of their suffering could range from minor inconvenience to life-altering calamity. It depends on where you are, how long the storm lasts, how exposed you are to its impacts, and how much you stand to lose. The analogy is apt since, other from basic protection and preparedness, it frequently feels as if there are raging elements beyond your control.
However, it is not all doom and gloom, and there is plenty that can be done to not just survive, but perhaps even profit from the recession.
Despite all of the obvious negative effects of a recession, it can also be an excellent time to expand and develop your firm, as many of your competitors will most likely be doing the exact opposite. Despite the seeming fear, consumers and businesses continue to seek solutions to their problems; nevertheless, they may begin to look for greater value. If your product or service meets that need, this recession-fueled demand could become an opportunity for you.
The similar concept might be used to current clients and users. A smaller version of what you normally sell, as well as a cheaper and/or more basic version, can be appealing.
But why confine your analysis to existing markets? Other marketplaces are out there; you just have to look for them. Older people, for example, are less affected by recessions because their mortgages and loans have largely been paid off, and they are not typically salaried. Now would be a good time to tap into these users if there is a means to do so.
A recession can also provide opportunities for businesses to grow their market share, and those who have the bravery and insight to boost their marketing expenses will benefit in the long run. When a company’s income begins to decline, the natural reaction is to reduce spending. And the marketing budget is frequently one of the first to be cut. This is unquestionably a blunder.
Boarding up the windows and shutting off the lights when the number of customers entering your shop begins to decline is a terrible idea.
And, while we’re on the subject of optimism, don’t forget that a recession can shake up any firm. While this may be uncomfortable at first, it can eventually lead to more flexibility, better spending habits, and more creativity.
But, let’s be honest, this isn’t going to happen. You’ll feel ill for three days if you go to the doctor for an immunization and then spend three days shivering in bed as your body builds up resistance. However, recognizing that there is a light at the end of the tunnel can help you get through the pain in the near term.
And don’t forget the obvious: your company not only makes money but also spends it. In a desperate bid to boost revenue, several businesses are lowering prices, resulting in some fantastic offers on software, products, hardware, services, and more. As the economy worsens, don’t make the mistake of ceasing all spending. Spend with caution, make more informed decisions, and take advantage of the available savings.
It’s also a wonderful time to put money into your current supporters. It’s critical to keep their loyalty during these trying times, and a little kindness now could pay dividends in the long run. You already know that recruiting new clients is more expensive than keeping existing customers happy, but are you reassuring and impressing them now, while the going is still good?
Under no circumstances should you abandon plans for new products or services at this time. You could want to put a recession/savings spin on them, but new products and services are just as likely to be popular now as they were a year or two ago for many goods and services. Sales may take longer to come in, but spreading the word and developing a name takes time.
So much for theory and confidence. What should you be doing to ensure that you not only survive but but benefit from the recession?
Begin with your most important asset: your consumers. Now is the moment to learn more about who they are, where they came from, and how the recession may effect them. Now is the moment to establish a regular communication channel with them. And now is the moment to figure out what they want and how to meet those needs. Many small firms take a sloppy approach to invoicing their customers. This is precisely the type of problem you want to avoid during these times, aside from the fact that it is bad business practice. Allowing your customer’s inefficiency or unwillingness to pay on time to run rampant could lead to cash flow issues for your company. It’s a problem that can be difficult to fix, but it’s also one that can be avoided.
Threats or harassment aren’t necessary when encouraging clients to pay on time. However, invoices should clearly state payment terms, and clients should be aware that failing to pay on time would result in additional fees. Why should you be any different? They anticipate this from most of their other vendors, so why should you be any different? However, keep in mind that there’s no need to be overbearing. You certainly don’t want to lose a long-term customer. Make sure the balance is correct.
The next stage should be to think about any and all expansion options. New products or services, new licenses, new pricing models but while we’re on the subject of pricing, don’t just decrease rates to try to boost sales volume. It’s a way too simple plan that, in addition to risking a revenue reduction, can cheapen your company’s reputation and make you appear desperate. Customers require extra reassurance during a recession, so don’t make prospects wonder if you’ll be around in a few months.
And, despite my repeated pleas not to cut marketing budgets or discontinue spending, now is a good time to do so where it makes sense. Saving money on phone calls and utilities, for example, may be found with a little study, and for some businesses, cutting down on unneeded travel can also be a good way to save. All of this should have been done before the financial crisis, but as the phrase goes, better late than never.
However, don’t throw the baby out with the bathwater, as the phrase goes. Switching to a cheaper internet service provider to save a few bucks per month may turn out to be a false economy if your new connection is slow and unreliable. Reduce unnecessary spending, but don’t scrimp on quality.
The importance of cash flow cannot be overstated. Despite the fact that many small businesses believe that such notions only apply to larger corporations, cash flow can be the difference between a company’s survival and death. Using your accountant’s abilities or even software such as QuickBooks, you can get this information right now. Keeping track of cash flow is simple, easy to plan around, and could save your life.
If you anticipate short-term cash flow issues, don’t be afraid to take whatever steps are necessary. Even if your company has always been self-sufficient, borrowing money to fund critical expansion makes a lot more sense than failing to launch a promising endeavor.
Last but not least, a word of warning. Nobody knows how long the current recession will persist, or how our businesses will be affected in the months ahead. Even if your company is doing well or even thriving right now, there will be a lot of change ahead. Most new initiatives require time to develop and implement, so now is the time to take a look around, examine your options, and begin putting ideas into action.
Which industry is recession-resistant?
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.
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.
In a downturn, 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.
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.
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).
Which businesses prospered during the Great Depression?
Chrysler responded to the financial crisis by slashing costs, increasing economy, and improving passenger comfort in its vehicles. While sales of higher-priced vehicles fell, those of Chrysler’s lower-cost Plymouth brand soared. According to Automotive News, Chrysler’s market share increased from 9% in 1929 to 24% in 1933, surpassing Ford as America’s second largest automobile manufacturer.
During the Great Depression, the following Americans benefited from clever investments, lucky timing, and entrepreneurial vision.
Who profited the most from the financial crisis of 2008?
Warren Buffett declared in an op-ed piece in the New York Times in October 2008 that he was buying American stocks during the equity downturn brought on by the credit crisis. “Be scared when others are greedy, and greedy when others are fearful,” he says, explaining why he buys when there is blood on the streets.
During the credit crisis, Mr. Buffett was particularly adept. His purchases included $5 billion in perpetual preferred shares in Goldman Sachs (NYSE:GS), which earned him a 10% interest rate and contained warrants to buy more Goldman shares. Goldman also had the option of repurchasing the securities at a 10% premium, which it recently revealed. He did the same with General Electric (NYSE:GE), purchasing $3 billion in perpetual preferred stock with a 10% interest rate and a three-year redemption option at a 10% premium. He also bought billions of dollars in convertible preferred stock in Swiss Re and Dow Chemical (NYSE:DOW), which all needed financing to get through the credit crisis. As a result, he has amassed billions of dollars while guiding these and other American businesses through a challenging moment. (Learn how he moved from selling soft drinks to acquiring businesses and amassing billions of dollars.) Warren Buffett: The Road to Riches is a good place to start.)
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.