The economic cycle is called a cycle for a reason: Last year, the U.S. economy added a record 6.4 million jobs, rebounding strongly from unprecedented losses in the year prior due to the COVID pandemic. Now in 2022, warnings about a looming recession have flared up as inflation continues to soar, among other variables, causing a downturn in the stock market.
While companies begin to lay off workers, you may ask yourself, ‘Is my job recession-proof?’
While 100% recession-proof jobs don’t exist, there are certain industries that have historically taken less of a hit during a recession.
During the Great Recession, the construction and manufacturing sectors experienced the largest dips in employment. Retail and hospitality were also strongly affected.
That’s because during an economic slowdown, people typically limit their discretionary spending, delaying big purchases such as new homes and cars, and frivolous spending such as expensive clothes and beauty supplies.
On the contrary, health care and government jobs typically offer strong job security during economic downturns because many people depend on these services despite the economic conditions. Without doctors, nurses, law enforcement or public utilities, our communities would fall into chaos.
Education is another stable sector. Economic booms may come and go, but investing in the future is always important. As such, jobs in primary education, secondary education, special education and adult education are highly relevant regardless of the economic climate.
In addition, when a recession hits, more people look to higher eduction as a way to gain new skills and improve their likelihood of being hired later on, increasing the demand for higher education staff at colleges and universities.
Despite your occupation or current job security, having an emergency fund will help in times of unexpected events, like losing your job. Most experts agree that you should have enough money in your emergency fund to cover at least three to six months’ worth of living expenses, as well as assets that are easy to convert to cash in a pinch, like stocks, mutual funds, U.S. Treasuries, bonds, etc.
If you’re seeking financial assistance or would like to put an emergency fund and financial plan in place, you’re welcome to schedule a complimentary consultation with our team of financial advisors.
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