In mid-2022, some experts believe the US slipped into a recession. While the jury is still out on the formal definition of this market event, the risks linger nonetheless. As the wavering economy causes stress and anxiety among many working professionals, questions arise about the solvency and stability of certain jobs during hard economic times.
Navigating a recession can seem tricky if you hold an accounting or finance job. We all know that the 2008 housing crisis was not kind to certain branches of the financial services; however, there are certain careers that stand the test of time and weather recession job markets better than others. Let’s dive deeper into the workings of a recession and discuss the careers that show promise.
What Happens During a Recession?
A recession signifies a notable, large-scale economic slowdown. During a recession, large businesses and individual consumers alike feel financial strain in various ways. Decreased spending power for workers amounts to lower budgets for groceries, travel, entertainment, education and more. This restriction of cash flow hurts a variety of industries, causing a chain reaction. Businesses experience lower revenue figures and therefore cannot afford to pay as many workers. Furloughs, layoffs and entire business closures may follow.
The principal worry for workers during a recession is that jobs will be harder to come by, pay will be lower and there will be much more competition for each open role. This creates an environment in which unemployment rises, wages drop and quality of life diminishes.
Which Careers Are Recession-Resistant?
Even in major downturns, some careers hang tough and experience only slight dips. Others run counter to prevailing market forces entirely.
Finance and accounting jobs have been shown to be remarkably recession-resistant careers. The reasons for this truth include:
- In tough economic times, people who are trained at solving financial problems are increasingly valuable.
- No matter the condition of the business, the books still need to be kept accurately.
- Audit and tax roles are necessary on a yearly basis, regardless of the economic conditions of the broader market.
Accounting professionals in particular experience much lower levels of unemployment and higher levels of job security than the average American worker. If you can prove yourself useful to the financial functionality and processes of a firm, your role can be surprisingly recession-proof.
How to Further Safeguard Your Career
Even in the finance and accounting world, navigating a recession requires diligence and intelligence. The more valuable you become, the less likely you will be to feel the effects of a recession.
In terms of building value, adding certifications and skills to your resume is always a prudent investment. CPAs in particular are constantly in demand, as well as those who can operate various accounting software programs, code or manage teams.
The more experience and ability you can amass in your current role, the more resistant your career becomes to the pangs of a recession.
Prepare for a Recession Job Market by Investing in Your Career
With the right partners and useful insights, you can pave the way for a successful career – regardless of economic conditions. The executive search team at Pinnacle specializes in matching top accounting and finance talent with stable and impactful jobs. After taking the time to understand your career goals and preferences, we’ll develop a search plan that prioritizes your vision. We believe in doing right by our candidates, every time. That’s why we want you to find a role that lasts and launches your career in the right direction. Contact us today to get the process started, or visit our blog for more market insights.