Economy

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Whispers about a possible recession have been in the air for a few years, but those whispers grew a lot louder recently with many economists highlighting various economic indicators pointing toward a possible recession in the immediate future.

Recessions can impact everyone differently, but history indicates that there will be mass layoffs, fewer jobs, more competition for jobs, and less job security.

Here's what you need to know about a potential recession's impact on your career:

Common Situations People Find Themselves In During A Recession

As stated above, a recession impacts everyone differently. Any issue with the economy will impact consumers' wallets in one way or another but things can become particularly painful when it impacts your livelihood.

From a professional standpoint, the most common situations people find themselves in during a recession include:

Feeling trapped in a job they hate - Perhaps you were looking to leave your current job and make a career change, but the recession put the brakes on that. A person trapped in a job they hate can be less productive and many times the unhappiness from their professional life bleeds into their personal life.

Getting laid off from a job - This is the most painful consequence of a recession. It has a significant impact on a person emotionally. It also forces them to pick themselves up and enter into a competitive job market. And the awkward and uncomfortable fact is that if you are laid off, you're better off being involved in a company's first round of layoffs. Those let go in a second round of layoffs must enter into an even more competitive job market where their former co-workers already have a head start on them.

Being forced to accept a job they don't want - People have bills to pay and it's not uncommon for some to become so frustrated with the job search process that they eventually settle for any job offer they get. This is especially painful for anyone that may have been laid off from a career they loved. Going from a career you love to one you don't could make you a less productive worker and could also have major emotional impacts.

Struggling to land a job at all - This is the worst-case scenario. Not only is the job market ultra competitive, but those who have lost a job are interviewing for new ones with an urgency that sometimes comes across as desperation. The more times a person gets rejected from a job, the more desperate they become and the more it impacts them during job interviews. The unfortunate truth is that those who are laid off during a recession are at a disadvantage because recruiters are more likely to hire people that are already employed.

How To Know If A Recession May Impact Your Career

There will be some common sense signs such as the state of your industry and the overall health of the company you work for, but beyond that, there are typically six strong indicators that your job is at risk during a recession.

The biggest indicator starts with doing an honest self-assessment about yourself because if you don't have a long-term career goal in place, you are vulnerable to losing your job during a recession.

If you're currently just getting by at your job but can't define what you do particularly well or the value you provide the company, that's a major red flag.

A solid long-term career goal involves a 2-5 year plan that highlights the skills and expertise that you provide to a company and what the company's return on investment would be if they hire you. This is all about creating and maintaining your personal brand. Your career goal should also include a plan for how you want to continue to grow professionally.

While having this plan in place doesn't make you recession-proof, it will put you in a better position if the worst-case scenario does occur!

How To Prepare Your Career For A Recession

Nothing in this world is foolproof but there are certain steps that you can take now at your current job that will make you less vulnerable during a recession.

It all starts with being an engaged employee who strives to always exceed expectations at work.

You should be the type of employee who has career goals in place. You know what value you provide the company and how you're going to provide it.

You should also be the type of employee who reaches out to management from time to time to see what you can do to increase your value to the company. An engaged employee is a valuable employee!

It's not a matter of if a recession is coming; it's when. Make sure you're prepared!

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This article was originally published at an earlier date.

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How A Recession Could Impact Your Career

4 Things To Know About Negotiating Salary In 2023 (And Beyond)

Salary negotiations can be tricky, but there's no escaping them. At some point in your career, whether you're applying for a job or angling for a promotion, you'll find yourself in the middle of a salary negotiation.

These conversations don't have to be uncomfortable. Like anything in life, knowledge and preparation can make all the difference. As an employee, if you know your value and you can back it up with quantifiable results, you can make a compelling case during your salary negotiations.

However, there are always everchanging trends and things that job seekers should be on the lookout for as they prepare to negotiate their salary.

The Economy Can Change In A Heartbeat

Businesspeople where masks during COVID-19

This is an important factor to remember and 2020 was a good example of how quickly the economy can change. As a result of the COVID-19 pandemic shutting down businesses and changing business models, many companies were forced to lay off employees.

With the availability of vaccines in 2021, businesses started to reopen but the market is completely different. For example, industries impacted significantly by the pandemic such as restaurants, retail, hospitality, and seasonal jobs are struggling to fill jobs and are raising wages to entice job seekers to work for them.

On the other hand, many employees got a taste of remote work in 2020, so the demand for remote jobs is on the rise. A recent FlexJobs survey found that after the pandemic, 65% of people still want to work remotely full time, and another 33% prefer a hybrid work arrangement where they split their time on the clock between the office and home.

Many in-demand industries like tech & software, cybersecurity, e-commerce, gaming, and telemedicine are all jobs that lend themselves to remote work and the market for such roles will be extra competitive. If you find yourself looking for a job in one of these industries, or other in-demand industries, you may be going up against people who have very similar skill sets.

This could significantly impact your value, especially if you live in a market where there are more qualified people with the same skill sets than available jobs. In these cases, you'll have to go the extra mile to stand out, and you could still be looking at a small salary reduction.

But, on the opposite end of the spectrum, if you live in a market where your skills are in demand and there's not much competition, you may be able to use that to your advantage during salary negotiations.

Salary largely depends on experience, location, and economic conditions. All of these things can be very fluid and that's why doing research is so important.

Speaking of research...

Never Stop Doing Research

Salary research isn't just limited to those looking for work. It's something that all professionals should do.

Even if things are going well with your job, and you're not necessarily in the market for a salary increase, it's still a good idea to check the market sometimes to see what the average salary for your position is at any point in time.

The need for consistent salary research is even more important in the post-pandemic economy where there are so many fluctuations in the market. Every industry was impacted differently by COVID-19 and this will ultimately play a role in salary increases that companies offer current employees and salaries offered to new employees.

According to research published on the Society for Human Resource Management website, company leaders were expected to increase compensation in 2021 by between 2.6% and 3%, but industries will continue to be affected unevenly, just as they were in 2020.

There are free resources available that can give some valuable information about job salaries. Glassdoor has a salary calculator that allows professionals to enter information about their current career, job experience, and market to give estimated market value.

The more information you have about your value, the more comfortable you'll feel about negotiating salary. It's also important to remember that salary is only one part of the equation. Many companies offer strong employee benefits packages that include good health insurance and retirement benefits, along with generous paid time off and other perks.

Salaries Are Always Changing

An employee looks over their paycheck after successfully negotiating a higher salary

Just because you make a certain salary today doesn't mean that it's going to stay that way or increase. Job responsibilities and requirements can change, and the best employees are the ones who are usually a step ahead and show a willingness to be flexible.

Take a step back once in a while and think about how your job is changing. Acquire the necessary skill sets that you need to stay ahead, and take time to find ways to go the extra mile and expand your job responsibilities. By doing this, you're not only growing within your job position, but you could be setting yourself up to move up within the company.

These characteristics will prepare you for not only being able to justify your salary but give you some leverage in salary negotiations if you're seeking a salary increase.

Salary And Career Planning Go Hand In Hand

An employee celebrates getting good career news at work

Salary increases don't typically just happen by accident. They're usually a result of hard work and continued career growth. From the moment you start a job, you should always be thinking about ways to not only meet expectations but exceed them.

By putting together a career map, you can plan out your goals and strategies for gradually increasing your value as an employee. As you check off these accomplishments, you can get a sense of whether you're on schedule, or even ahead of schedule, to reach certain career milestones.

Keeping track of these milestones is important because it can help determine the right time to bring up the topic of salary and bolster your case during negotiations. Remember, you're a business-of-one, and it's important to always know the value that you provide to your employer.

Some salary negotiation strategies will never change, but it's going to be important to keep track of post-pandemic trends and their impacts on salary, at least for the immediate future.

Need more help with salary negotiations?

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This article was originally published at an earlier date.

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4 Things To Know About Negotiating Salary …

The COVID-19 crisis has sent the economy into a recession and impacted numerous careers. Although people are naturally on edge right now, it's important to know that while searching for a job during a recession isn't easy, it's not impossible.

As a result of the COVID-19 crisis, millions of people quit their jobs or were laid off by their employers, and many are still struggling to find a job. There are record levels of competition for open positions. If you want to stand out to employers, you need to be prepared for the job search process.

Here are four common myths about the job search process during a recession, and what you should do to land a job in hard times.

Myth #1: No One Hires During A Recession

Businesses are always hiring!

There are some businesses that are greatly impacted by recessions that will reduce staff and implement hiring freezes, and others that will slow their hiring, but in general there's always some need to hire people as a result of vacancies and retirements. In addition, there are some industries that continue to do well in a recession.

However, while businesses are still hiring during a recession, the job competition will be greater and you'll need to work harder to market yourself as an employee worth hiring. There are multiple ways you can make yourself a better candidate. This includes finding ways to upskill, networking, improving your resume, and writing a disruptive cover letter.

Myth #2: No One Will Hire You After Getting Laid Off

Layoffs are a fact of life and businesses realize that.

But from a competition standpoint being laid off puts you at an initial disadvantage. Layoffs are common during a recession. This increases competition because of the number of people in the job market in need of work.

If you're laid off, you have to work even harder to market yourself to potential employees. But at the same time, you don't want to come across as too desperate. Like with any job search, do your research and leverage your professional network whenever you can.

You may also want to consider which industries are still hiring during the recession and taking a job in one of those industries to hold you over. There's no shame in working outside of your desired industry. There may even be benefits to it.

Given the circumstances of COVID-19 and the recession, future employers will understand the career detour.

Myth #3: If You're Over 50, You Won't Get Hired

Age discrimination is a topic that comes up from time to time but in reality it's actually called experience discrimination.

People over the age of 50 are staying in the workforce a lot longer but have to compete with millennials and Gen Z that make up more than half of the workforce. These younger generations are highly skilled, tech savvy, and a lot cheaper to employ.

This means that anyone over 50 looking to get hired needs to work even harder to get noticed. You need to clearly understand and sell what it is that you do well (your specialty). You also need to invest in yourself and be willing to upskill whenever you can.

Myth #4: You'll Have To Take Less Money

Finding a job during a recession doesn't mean an automatic pay cut!

Recession or not, you should prepare for a typical salary negotiation process. Do your research and have an idea of the competitive rate for the position you're pursuing.

If you've settled on a salary range, be ready to prove to the company why you would be worth the investment. You can do this by demonstrating why you'd be a valuable asset to the company and how your unique skills/experiences will make you the best fit for the role.

It always comes back to marketing yourself.

Recessions come and go and we will get through this one! Recession or not, one thing about the job search process remains trueâyou have to work hard and be your own best advocate.

Need more help with your job search?

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This article was originally published at an earlier date.

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4 Myths About Job Hunting During A …

When a recession hits, many people immediately begin to worry about their jobsâand with good reason. Recessions usually mean mass layoffs, fewer jobs, more competition for jobs, and less job security. But some careers are safer than others.

Several websites, including Glassdoor, have compiled lists of jobs that are expected to survive the next economic downturn. Every list is a little different, but there are some professions that consistently show up. Here are five of those careers.

Keep in mind the term "recession-proof" is relative. A recession impacts everyone differently, so nothing is ever 100% foolproof.

1. Medical/Healthcare Providers

This category includes a wide range of jobs: doctors, mental health professionals, home healthcare services, registered nurses, and physical and occupational therapists, to name a few.

The bottom line: No matter the economy, people get sick or injured and need care!

These jobs usually offer competitive salaries and, with the growth of the healthcare industry and many experienced professionals retiring, these fields are always looking for new and young talent.

2. Teachers/College Professors

Teacher shows her students how to work on a computer

The need for education is also something that never stops, regardless of the state of the economy.

Job growth for teachers typically remains steady as districts are usually faced with the retirements of experienced teachers each year. In addition, if enrollment levels remain steady or increase on a yearly basis, cutting teachers would likely impact the quality of education. Many teachers are also tied to labor unions.

College professors, particularly ones with academic tenure, are also very secure in their positions as college enrollments remain somewhat consistent during a recession.

3. Funeral Home Director

This may be morbid but death is the ultimate recession-proof business!

The funeral home director position may not be in demand but the need is constant. It's consistent work that's not impacted by the economy or any other seasonal factor.

Of course, it goes without saying, the job does have its drawbacks.

4. Utility Workers

Keeping up with public infrastructure projects is a never-ending battle and while communities may try to cut some costs during a recession, taking care of roads, electricity, sewage, trash, and water are essential services that communities can't afford to skimp on.

In addition, in recent years many utilities have experienced labor shortages, so there are usually many positions available for those looking for a job or career change.

5. Accountant

Benjamin Franklin famously said the only certain things in life are death and taxes.

We already touched on death, so now it's time to touch on taxes. While accountants are particularly valuable during tax season, their services are needed year round.

Whether you're a business owner or just an everyday person, dealing with numbers and financial records can be tricky. And, during a recession, the need for assistance with finances is great.

Many believe a recession is imminent and it could very well impact your career. Now is the time to prepare!

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This article was originally published at an earlier date.

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