The 2020s have been tough so far. The decade started with a global pandemic and has continued with successive waves of economic turmoil. Now there’s worry about a possible recession. Are you ready for the next economic challenge on the horizon?
The end of the pandemic was followed by a spike in inflation. To counteract this, the Federal Reserve, the U.S. central bank, began raising interest rates. This move is meant to slow the economy, putting less upward pressure on prices and eventually getting inflation under control.
Unfortunately, this process has a tendency to trigger a recession. This would likely mean higher unemployment and increased difficulty finding jobs. Here’s what you need to know to get through a potential recession and keep your career on track:
Preparing for a Potential Recession in 2023
Stay Informed about the State of the Economy
Recessions don’t appear out of thin air. However, they can happen without significant warning. For instance, some of the devastation of the Great Recession came about because the economic downturn was triggered by the sudden dislocation of the financial markets.
However, in many situations, there are sufficient alarm bells. That has been the case this time around, with notable discussion ahead of the potential recession. Your first task is to stay informed about the prospects for the economy. Make this research part of your regular routine, giving you the data you need to make reasonable assumptions about the future.
Prepare Before the Worst Hits
When possible, start your planning process early. Even in good times, you should have emergency steps in mind. Staying prepared will ensure you aren’t panicked if the worst happens.
Part of this involves understanding your possible exposure to an economic downturn. Here are a few questions to consider:
- How stable is your employer? Some companies are particularly vulnerable to recessions. Others are well-positioned to continue to thrive, even when the general economy slumps. Understand where your company sits on this spectrum.
- What’s your position within your organization? Understand how likely it would be that you might lose your job in a downturn. If you’re first on the firing line (you were recently hired or in a struggling department), you might need to take more dramatic action.
- What are your other options? If you have in-demand skills or a wide variety of career alternatives, you might not be as sensitive to changes in the economy. Change might be necessary, but you have moves to make. It’s key to review the market and understand your place in it.
Develop Contingency Plans
As you prepare for a potential downturn, make specific plans. More than that, take whatever action you can to get ready for a shift in your economic prospects. Here are some steps you can take ahead of a recession:
- Have emergency cash available
- Avoid loading up on debt during good times
- Set up financing options, like lines of credit
- Create a “basics only” budget you can switch to if things get tight
- Always practice good networking, so you have the most options possible in a bad situation
Remember that your career will be subject to broader economic forces. As such, you can’t adopt a narrow view of your professional development. A recession might mean changing your course for a period of time. This could include:
- Taking positions you hadn’t considered in better economic times
- Opting for part-time or contract positions while you wait for the economy to improve
- Updating your near-term salary expectations
- Getting more proactive about your job-search efforts, including a more aggressive approach to networking
- Injecting more creativity into your job search, like trying new outlets for finding new positions
- Working on your professional brand, letting you stand out in a more competitive job market
Still, don’t lose hope about the future even as you prepare for economic turbulence. Recessions are temporary. Keep your long-term development in mind as well. This broader perspective will ensure that you continue to work for your most cherished career goals, even as you weather whatever short-term challenges arise.
Looking for More Guidance Regarding the Economic Climate?
In troubled economic times, it helps to have expert guidance and support. A top recruiter, like Hiregy, can deliver the insight you need to thrive in every economic climate.
Contact Hiregy today to learn more.