The news about the global crisis that’s sweeping across countless businesses won’t seem to stop. These days, even the most successful companies deal with mass firings, hiring freezes, and even with canceled job offers. But even though it feels like the reckoning is upon us, there still are some recession-proof industries that could keep thriving in these volatile times. Take a peek & see how certain business sectors manage to succeed during the massive slowdown.
What are recession-proof industries?
According to research conducted on US soil, prices had increased by 8.5% from July 2021 to July 2022. Also, studies show that most of Europe will likely enter a disastrous chapter in the winter of 2023 due to energy shortages and inflation. And with massive layoffs, the global situation doesn’t seem too encouraging. Especially with this piece of information in mind – 78% of US employees fear that they could be fired in the months to come.
However, economic experts don’t think we’ve entered a full-on slowdown just yet. Although things aren’t exactly peachy, most of them claim that the global situation is still under control. A more downbeat view, however, suggests that 2023/2024 are the years that have severe credit crunches in store.
But still, if (or – when) we do step into a darker period, some recession-proof sectors are what we should pin our hopes on. While there is no such thing as a fail-safe company, be it a startup or an established corporation, some sectors and niches just have better chances of dodging the crisis. In other words, certain industries and branches manage to perform well during the worst of times.
Best recession-proof industries 2022
During the 2007 to 2009 recession, several industries suffered devastating impacts. According to the US Bureau of labor statistics, many manufacturing and construction workers went through a great deal of trouble back then. The employment rates in these sectors dropped significantly. While it definitely is bad news, this kind of aftermath actually makes sense. People tend to postpone major purchases when economic difficulties set in.
And while economic downturns offer very few silver linings, there is some consolation: recession-proof business sectors. So, if we face another massive stagnation, these three fields will continue to boom:
✅ Healthcare industry,
✅ Tech industry,
At first glance, we might not notice a striking similarity between these three domains. However, they’re bound by two immensely important factors: they’re far less sensitive to alterations in interest rates, and people will always rely on their services.
The tech giants are bouncing back
Although the IT industry giants went through a rough patch, too, some of them have shown that they still manage to fight the economic blow. For example, Microsoft and Amazon demonstrated that their high-income cloud businesses continued to grow even as the economy cooled off. Apple also announced an increase in sales of apps and subscriptions.
Some financial experts suggest that the tech industry has already hit the bottom, and now they’re making a huge comeback. According to the freshest news, all big tech players have bounced back.
Microsoft’s officials said they expect double-digit revenue growth for the following year. And Amazon expects sales to increase by 13% or more in this quarter.
Other recession-proof jobs & business ideas
So, what industries are least affected by the recession? As we’ve seen, those that are less delicate in terms of changing interest rates will likely keep on booming. Also, aside from the essential workers like nurses and other medical staff and always in-demand tech talents like software developers, engineers, and other IT professionals, there are a few more resilient niches and jobs.
For example, accounting and financial services will always be needed. Even though the economy is bound to move through cycles, its ups and downs won’t have a huge impact on these sectors. Auto repair shops will also stay quite busy, in fact – maybe even more so than before. People will freeze all purchases that aren’t absolutely necessary, and they’ll rather fix up and redress their vehicles. Finally, public utility services will survive all economic downturns. Electricity, water, sewage, and everything else that falls under this category will stay essential for good.
What industries get hit the hardest during a recession?
An ongoing decline in economic activity affects all but certain sectors are more likely to take a hard hit. So, the negative growth rate never fails to take its toll on travel and tourism. Studies show that during the era of the pandemic, the number of passengers in US airports has decreased by a staggering 95%. Also, more than 80% of American travelers have altered or canceled their scheduled trips.
Leisure, hospitality, and the food service industry are also prone to gloom-ridden predictions. The official 2020 data show that the unemployment rate in these niches increased from 5.7% to 8.5%. But here’s some positive news: fast food restaurants could easily thrive even in the toughest conditions. So, many of them can be put into the category of recession-proof industries.
The retail industry is also bound to suffer the consequences of the economic crisis and similar issues. Most shoppers are facing hard times due to their company’s budget cuts and/or layoffs, which means an inevitable slowdown in retail too.
How should we prepare for a 2023 recession?
Yes, all the headlines and experts’ predictions feel downhearted. But, regardless of your current job and status, you shouldn’t panic. The right thing to do is to grasp how to prepare for the 2023 recession. These are the basic steps we all must follow:
💸 Boost your emergency savings so that you can deal with any unsought situation (like a loss of a job),
💸 Prioritize necessary costs and pay off your debts ASAP,
💸 Strive to find more than one stream of income; By doing so, you could be spending one of the paychecks on your daily needs while you get to keep the other one on the side.
So, when looking for an additional gig to increase your financial security, you could use an online course or two to master a few skills needed to land a (good) freelance/remote job. Or, you could bite the bullet and choose to switch your current position for a more profitable (and recession-proof) career.
No business is recession-proof – but some stand a far better chance!
Healthcare, IT (freelancers and software development companies), and the education sector are among the most recession-proof industries out there. Still, they’re not the sole fields that will grant you an (almost certain) source of income. Financial planning and bookkeeping are also in for a successful chapter, regardless of the economic turmoil. And so are utility services, which will never stop being absolutely necessary.
So, if you’re looking for a new full-time job, a side gig, or a way to kickstart a business, keep your eyes on these booming lines of work. And don’t forget to follow the key steps: save up, manage your finances well, and grow your skill set.