Recession-proof jobs are an asset that could keep you and your family in the lifestyle you’ve become accustomed to when the economic tides turn choppy.
But you may be wondering why you should be worried about a recession when the U.S. economy added 517,000 jobs in January of this year. While employment numbers matter, they alone don’t signal a bumper economy.
In this guide, we’ll discuss what a recession is, what sector is recession-proof, and the best recession-proof jobs in 2023.
What is a Recession?
Before discussing recession-proof jobs, what is a recession?
Significant declines in economic activity characterize recessions. They can happen in a single country, or they can be global. From a technical standpoint, the recession meaning is two consecutive financial quarters of negative economic growth.
The impacts of a significant recession include the following:
Other effects can also occur depending on the severity of the recession. It could mean higher inflation rates, reduced house prices, and poor investor returns.
Worst Jobs During a Recession
Every economic sector is impacted differently. Some suffer more than others, with some sectors barely touched.
Before discussing the best recession-proof jobs, here are five examples of the worst and the reasons why:
- Retail – Deciding to get a job in sales during a recession is not recommended because lower consumer spending power means reduced demand.
- Construction – Highly dependent on current economic conditions, construction projects are often the first to be put on hold or canceled due to the expense required.
- Motor Vehicle Sales – Auto dealerships tend to see significant reductions during recessions as people rein in their luxury spending.
- Tourism – Worries over employment and the cost of living can curtail the travel industry. Travel agents, tour operators, and hotels often struggle during recessions.
- Printing and Related Services – Businesses tightening their belts will begin by cutting non-essentials. These include printing and related services like plate making, data imaging, and business card printing.
Switching to another career could make sense if you’re in any of these industries. For example, you may want to consider how to start freelancing or going back to school.
Best Jobs During a Recession
In the Great Recession of 2008, 8.6 million jobs were lost in the U.S. economy, representing the most significant economic disaster of the modern era. However, some career paths survived and even thrived.
If you’re wondering, “How do you recession-proof your career?” here are some excellent career paths to explore.
1. Medical Professionals
All medical roles are considered recession-proof jobs because healthcare is one of society’s needs. Although some private physicians specializing in elective surgeries may see reduced business, this sector still has tremendous entrepreneurship and opportunity.
Most jobs require you to return to school and obtain qualifications, whether you want to become a nurse, physician, surgeon, paramedic, or even a veterinarian. In most cases, expect to spend years retraining.
2. Law Enforcement
Law enforcement is another of society’s needs, meaning it remains largely unaffected by recessions. Whether you want to be a law enforcement officer or work a desk job, you may require little more than a high school diploma/college degree and mandatory training.
3. Public Utility Services
Any public electricity, water, waste, sewage, and recycling job will also be recession-protected. Utility workers are an essential cog in maintaining public order and health.
Interestingly, since many utility services are required to conduct audits throughout the year, consultancy services in this sector also tend to thrive. This could make consultancy a great option, especially since grants for black-owned businesses are available.
Depending on what sort of job you want, some may require a college diploma in a specific field, or you may be able to enter with little to no education or experience.
4. Financial Services
It should come as no surprise that Wall Street also tends to survive during economic recessions. Many Hispanic financial influencers have already highlighted the benefits of choosing a position within this industry.
Some examples of jobs include:
- Tax preparers
- Insurance underwriters
Note that the majority of these positions will require going to college. Jobs like being an insurance underwriter often mandate that you have a major or minor within a mathematics field, such as math or physics.
Also, many positions may require you to hold professional qualifications and certifications, such as Certified Public Accountant (CPA) or Chartered Financial Analyst (CFA). Mastering different learning styles and being motivated to hit the books is a must for a career in financial services.
5. Education Services
Other recession-proof jobs include those in the education sector. Primary, secondary, higher, special, and adult education are always relevant regardless of what the economy is doing.
Those pursuing this path must obtain the relevant teaching qualification, typically a college degree and specialized teacher training.
Beware that the way education is delivered is changing. This is why knowing about technologies like ChatGPT, smart technology, and online learning platforms is vital.
6. Start Your Own Business
Recessions often result in a boom in entrepreneurship as people lose their jobs or take the opportunity to reflect upon where they want to go next. With so many learning platforms online, it’s never been easier to equip yourself with the skills needed to start your own business.
The other advantage of going into business for yourself is that there are few barriers to entry. You’re the boss, so you don’t need to worry about degrees or qualifications.
If pursuing this endeavor, skills like finding your ideal customer and generating a passive income are essential, as is choosing a concept that can carve out its market niche.
However, you must also be willing to learn the fundamentals of opening a complaint business, including:
Protecting Yourself With Recession-Proof Jobs
When deciding on recession-proof jobs, the rule of thumb is to consider what society needs rather than wants. Any job required for society to function will always survive a recession, like most government positions.
But changing careers is not a move you should rush into. At Urban Income, we focus on helping minorities to change their lives and income. If you want to learn more, sign up to gain access to financial products, news, and information today.