TL;DR: Some experts say a recession is inevitable. But there is some good news -- we've got you covered with the essentials: Here’s what to expect, the safest jobs, and how to build a backup plan if you find yourself unemployed.
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Jobs that are safe (and jobs that aren’t)
While it’s safe to say most jobs aren’t truly recession-proof, some careers may be safer than others if a recession hits. “Anyone in medical care is considered pretty recession proof,” says Jill Jacinto, a millennial career expert. “It’s a service people will always need.” In that sense, Jacinto says that people who work as doctors, therapists, nurses, pharmacists, and senior care providers may be the safest.
Jobs that typically aren’t safe, on the other hand, are retail and service-based, career coach Hallie Crawford says. (In fact, she says, these are often the first industries to be hit by a recession.) What’s more, “If we look back at the last recession, the hardest hit areas were architects and construction, travel agents, event planning, and real estate,” says Jacinto. “This makes sense since people are scaling back from buying homes and cosmetic home improvement projects when money is tight. They also are forgoing vacations and large-scale events.” Jacinto adds, “People working in media also got hit with massive layoffs since advertisers were shrinking budgets.”
Here are the 10 fastest-growing industries:
- Information technology
- Construction
- Drink manufacturing
- Personal services
- Direct retail
- Finishing contracting
- Real estate
- Trucking
- Architectural engineering
- Healthcare
Skills you should hone
Whether you work in a field that’s more (or less) recession-proof, it’s wise to hone certain skills that will be valuable no matter the state of the economy. After all, as Jacinto says, “The people who tend to survive layoffs are the ones most adaptable to change.”
She advises that your first step should be to learn or take courses on the newest skills needed for your particular job or industry — even if your work doesn’t require it. You should also practice being the “yes” person, Jacinto says — the one who is proactive about taking on projects and making your boss look good. (Making yourself indispensable is a good idea all the time.)
Crawford says that tech skills, regardless of where you work, are essential to keep sharp. “Knowledge of technology is always going to be a must-have,” she points out. Plus, project management skills can transfer to almost every job and industry, which can be highlighted on a job application. “Every organization will need people to manage projects effectively,” she explains.
How to build a back-up plan
Having a backup plan will give you peace of mind and a clear path to follow should a recession hit.
- Jacinto recommends that your backup plan include strengthening your network and personal brand. “Check in with your network and develop new relationships,” she says, “so if layoffs hit, you’ve already done the meet-and-greets and can ask for job recommendations and referrals.”
- Second, “mentally prepare yourself for having to accept less money, benefits, or — the most likely outcome — taking on more work during a recession,” says Crawford. In recessions, companies may try to do more with less, and your job — or a new job — may look very different than you envisioned. “Consider ways to be more efficient with your job, in case you are asked to take on an additional workload,” Crawford suggests.
- Finally, think about ways to reduce your spending so that you’ll be financially prepared for whatever may come.
Talking to your boss about recession concerns
If you’d like to speak to your employer about potential recession risks, you can—but carefully. “You should not flatly ask, ‘Will I be getting laid off?’” warns Jacinto. “Chances are that your boss has no idea—and more importantly, you want to position yourself as a strong employee.”
Instead, Jacinto and Crawford agree that you can broach company and economy issues in a one-on-one setting and in a way that doesn’t address your job specifically. You can ask: “How the organization is doing knowing the current state of the economy, and if the company or your department should do any planning for a possible recession,” says Crawford. “Your boss will likely not want to alarm any employees to a chance of staff reduction, but taking a proactive stance and opening a possible conversation for a plan of action is a positive way to address it.”
You may also want to set up a time to present to your boss how valuable you are the company, Jacinto says. “Put together a presentation that walks them through your day-to-day projects but also your accomplishments year to date,” she says. “How many new clients did you add? Have you increased ROI or decreased budgets? Letting your success speak for itself subconsciously tells your boss you are essential to the business and not the person they should mark to leave.”
What to do if you’re laid off
If the worst should happen and you are laid off during a recession, you may have some options.
Here’s some advice from Crawford and Jacinto.
- Review your employee handbook and study your company’s policy on layoffs and severance, says Jacinto. “You might be owed a nice amount of money, and better for you not to leave it on the table,” she says. You may be entitled to unemployment, payment for unused vacation days, and more. If the handbook doesn’t make it clear, schedule a meeting with HR.
- Find out what insurance benefits you may be entitled to in the event of layoffs. If they aren’t provided, you may want to check out COBRA to continue your insurance in the short term or get insurance through Healthcare.gov
- Ask your employer if there’s an opportunity for you to work as a consultant or contract employee, even part-time, says Crawford. “If the layoff is permanent, ask if they see any chance to be re-hired in the future if they are willing to give you a recommendation on LinkedIn, and if they are willing to be a reference for you,” she says.
- “And ask for any connections or referrals they may have to other organizations for possible jobs.” The company may be able to point you toward a great opportunity — or at least in the right direction.
Learn more
Now that you know more about how to survive a recession, here are some additional resources that will help you navigate (and thrive) through whatever may come. In addition to the list below, there are hundreds of resources on Glassdoor’s blog.