Job Searching During Economic Downturns: What Works

Learn how and when to job search in an economic downturn today!

Job searching can present challenges even when the economy’s doing well. Throw an economic downturn into the mix, and those challenges tend to increase. Whether you’re straight out of school, looking for a new job with better pay, or laid off and looking for a comparable new job, it’s possible to improve your chances of landing a job during a recession if you apply some strategy and perseverance.

Read on to learn how and when to job search in an economic downturn, with tips on focusing that search.

What happens during a recession?

A recession is equated to a period of economic downturn that significantly impacts and puts a strain on businesses in various ways, including financially. As a result, many employers end up laying individuals off during economic downturns. Though not as severe as a depression, you’ll commonly see the following during a recession:

Lower consumer spending
A decline in private-sector spending
Higher unemployment rates
Larger numbers of people and businesses filing for bankruptcy
Lower stock market prices
Decrease in pay for employees

When to job search in an economic downturn

It’s common to wonder when to begin a job search during an economic downturn.

Is there a right time to start?
Should I start as soon as possible?
Should I wait and see if things improve first?

It’s best to begin your job search during an economic downturn as soon as reasonably possible based on your circumstances. The sooner you get started, the sooner you are likely to land an interview and, hopefully, a new job. Also, hiring managers often stop reviewing resumes as soon as they find a few viable options, so the sooner you submit your application for a job, the better.

How to focus your job search in an economic downturn

Beyond when to job search in an economic downturn, you need to know how to focus your job search to improve your chances of success. Here are some considerations to help:

Focus on growing industries
Pursue other industries or fields
Consider a temporary job
Look into freelancing and contracting work
Identify companies instead of job titles
Be open to jobs in other locations
Reach out to your network

Focus on growing industries

One of the best ways to find a job during a recession is to seek out industries that are the least likely to be impacted by an economic downturn. We call these businesses recession-proof and some of these types of companies will even continue to grow during a recession.

These so-called recession-proof businesses are less impacted due to the type of services or products they offer. Examples of recession-proof and growth industries and sectors include:

Government
Internet technology
Legal
Research and development
Education
Healthcare
Oil and gas
Energy
Security
Food manufacturing
Finance

Some of the worst jobs during a recession tend to be jobs that rely on a consumer’s or business’s discretionary income, which often decreases during a recession. Jobs in retail, travel agencies, and event planning, for example, tend to rely on this type of income.

People also tend to wait to buy or build a new home, so real estate-related jobs can be negatively impacted. That’s not to say all of these types of positions will be affected, though the probability is generally higher compared to other industries. Once a recession softens and the economy improves, these positions often return to the job market.

Pursue other industries or fields

It’s likely that you have a set of transferable skills that could serve you well in positions outside of your current field or industry. If your particular industry isn't a growth or recession-proof industry, and you find yourself in search of a new job, consider what your transferable skills are. From there, look at jobs in other industries or fields where your skills could be applied.

Consider a temporary job

If you’re in a position where you need income, a temporary job can be the perfect stopgap until the recession lets up and it’s easier to find a full-time job again. Temporary jobs allow you to continue to apply your skills, gain experience, and avoid lengthy employment gaps on your resume. If you do well, you’re also expanding your professional network.

You can find temporary jobs by looking on common job boards and applying to them there. You can also seek out temporary employment agencies that place individuals with companies that have temporary job openings. It’s also possible for a temporary job to turn into a full-time job down the road.

Look into freelancing and contracting work

It’s true that freelancing isn’t for everyone, though it does bring several benefits, including income, continued work experience, and expanding your professional network.

Suppose you have skills that would suit you well as a freelancer, like writing, web development, and graphic design work. In that case, there are numerous freelance sites where you can add your portfolio and bid for jobs.

Or, maybe you are a subject matter expert in a particular area, like finance, business, or human resources. In that case, you can seek consulting jobs independently or through a site that connects consultants with companies and individuals seeking those services.

Identify companies instead of job titles

As you search for a job during a recession, it’s best to turn your attention toward companies that have openings that align with your skills vs. focusing solely on job titles of open positions similar to roles you’ve held in the past. The advantage of this strategy is that you’re opening yourself up to the possibility that your skills might align with several other types of jobs, even if they’re lower-level jobs. Read through job descriptions carefully to see what jobs your skills might line up with, and consider applying to them.

Be open to jobs in other locations

You might find that there are more open jobs in other geographical locations compared to where you’re currently located. Depending on your current job outlook and how long you might be out of a job, it could be worthwhile to apply for jobs in these other locations. Who knows? You might fall in love with the new city or area!

Reach out to your network

Your current personal and professional network is an excellent option to expand your job search during an economic downturn. Reach out to those you know, share with them what you’re looking for, and ask them about any available job openings they might know of.

Work with a recruiting firm

Recruiting firms help connect candidates with employers. The recruiters who work for those firms know what companies are hiring and the types of candidates they’re looking for. During an economic downturn, a recruiting firm might be able to help you streamline your job search and hone in on the types of positions you could be a fit for, saving you some time and frustration.

Tips to search for a job during an economic downturn

Now that you know when to start a job search in an economic downturn and where to focus that search, let’s take a look at some tips to support you throughout the process and increase your chances of landing a job.

Upskill. An excellent way to enhance your value to a company is to expand your skills through training and certifications. You can enroll in an online class or even research books or stay up-to-date on current trends by reading industry news.
Tailor your marketing materials. Submitting the same general resume to every job can hurt your chances of landing an interview. For one, the candidates who took the time to tailor their resumes will get noticed before you do. Also, general resumes often have a lower chance of passing an employer’s applicant tracking system (ATS). Your resume and cover letter should always be tailored to align with the job you’re applying to by using keywords from the job description within your materials.

Related reading: You Need a Targeted Resume: Here’s Why

Promote yourself. Promoting yourself helps get your name out there and puts you in front of others so they might more readily remember you if there’s an opening that you’d be a fit for. Ways to promote yourself include making sure your LinkedIn profile is active and up-to-date, creating a professional website or blog, sharing your expertise through social media, and creating an online portfolio.
Remain positive. It’s okay to feel a bit down and frustrated when looking for a job, especially when it feels like things are pushing against your success. That said, do your best to maintain a positive outlook to support you in getting through the process with as much ease as possible.
Be adaptable. Allow yourself to be flexible and open to new possibilities when searching for a job during a recession. Though your ideal job might not be available, another suitable position could be if you’re open to it.
Have patience. Yes, it can be difficult, though patience is a must when it comes to searching, applying, and waiting when attempting to land a new job, economic downturn or not.
Take care of your well-being. Living during an economic downturn can be challenging for a number of reasons. Add trying to find a job on top of everything else, and the stress can increase. That’s why it’s essential that you take care of yourself physically and mentally during such times. Find ways to alleviate stress that work for you and take the downtime you need to recharge.

You can land a job during an economic downturn!

You’re now equipped with the information you need to support your career success during a recession, including how, where, and when to job search in an economic downturn. Use these insights to guide your job search journey so you can keep your head held high and secure work, regardless of what the economy is doing. Good luck!

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