10 Crucial Strategies For Job Searching In A Recession

The economic horizon is shifting, and the signals are becoming increasingly clear: a recession is likely on the horizon. Institutions like J.P. Morgan are projecting a significant probability – a 60% chance of a U.S. recession in 2025, driven by factors ranging from the lingering effects of trade policies to potential contractions in real GDP. Their economists have even flagged concerns about a possible two-quarter recession in the latter half of next year, with GDP potentially shrinking by 1% in Q3 and 0.5% in Q4.

Historically, the U.S. economy has experienced a recession roughly every four to seven years. This means that if you're in your twenties, you've likely navigated two to three economic downturns already. Those born in the 1990s may have witnessed three or four, while individuals in their fifties could have lived through seven. For those born in the 1940s, the number could be a dozen or more. These cycles, while challenging, are a recurring feature of our economic landscape.

At 53 years old, I haven't lived through the stark realities of the Great Depression (I have been watching documentaries on the History Channel and PBS on how the average American made do with very little during that era while the robber barons threw lavish parties and became even wealthier though... some things, unfortunately, never change) but the economic reverberations of the dot-com bubble in the early 2000s and, more vividly, the Great Recession of 2007-2009 are etched in my memory. That's one advantage of being older. One gets to look back with 20/20 vision.

While the initial shockwaves of the COVID-19 pandemic in early 2020 led to a swift recession and the loss of 23 million jobs, it's still the Great Recession that remains the most visceral for me. I was in my mid-thirties, working squarely within the real estate and mortgage industry – the very epicenter of the impending financial crisis.

Spanning 18 months, from December 2007 to June 2009, the Great Recession was the longest downturn since the Great Depression. Its severity was profound: both GDP and the number of jobs contracted by approximately 6 percent, and median family incomes took a significant hit. Millions of lives were upended. Over 30 million individuals lost their jobs, and the rate of long-term unemployment doubled its historical peak. Household net worth plummeted by 18 percent, a staggering loss of over $10 trillion, marking the largest decline in wealth in the fifty years since the federal government began tracking such data. Making things worse was the fact that the employment recovery was agonizingly slow, stretching well beyond the official end of the recession.

Those of us who worked in the industry all pretty much knew that this real estate bubble was about to pop and the consequences would be dire for everyone. The fragility of this system became starkly apparent when day after day, I saw the names of mortgage bankers I’d been working with landing on the Implode-o-Meter list. It became commonplace to receive calls from my reps that they couldn’t fund my borrowers’ mortgages because their companies had abruptly closed its doors due to a lack of funds. The speed and severity of the collapse were breathtaking.

The fallout wasn't just external; it was deeply personal. The brokerage where I hung my license at the time became another casualty. When the company went belly-up, the $30,000 commission check that was supposed to have been released to me several weeks before, and which would have seen me through several months, vanished into thin air. To this day, what haunts me the most about that chapter of my career is that I had happily referred trusted vendors I had worked with in the past to the company and they ended up not being paid either.

Left with nothing to show for the work that I'd already done, struggling with a pregnancy rife with complications that precluded finding other jobs to jump to, I could only watch as millions of dollars worth of my mortgage transactions evaporated, one after another as property values plummeted, and lenders, the very lifeblood of the industry, ran out of capital or declared bankruptcy mid-transaction. The rug was being pulled out from under everything as other industries also felt the repercussions of the financial crisis.

Simultaneously, my husband also lost his job. We went from a comfortable six-figure income to suddenly living solely on our dwindling savings. I vividly recall a moment when we had to scrounge together our empty soda cans to get enough money to buy just six eggs. Even at that time though, we somehow managed to laugh about our situation, proving how invaluable humor in the face of adversity is, and over the years, we’ve constantly referred to that low point as the moment when we knew we could survive anything.

The physical landscape of the crisis was equally haunting. I remember driving through neighborhoods that had once been symbols of prosperity, now eerily deserted, due to foreclosures. Rows upon rows of once-beautiful, ostentatious McMansions stood empty, their interiors stripped bare – appliances and furnishings gone, right down to the light fixtures. Broken, dusty windowpanes stared out like vacant eyes, and overgrown grass choked the once manicured lawns. These were tangible monuments to shattered dreams of homeownership and a collapsed market.

While deeply challenging, the past recessions taught me the importance of adaptability, the fragility of even seemingly too-big-to-fail stable industries, the critical need for financial prudence. It is from this perspective, having navigated these turbulent waters, that I offer the following advice:

10 crucial things job seekers need to know to survive and thrive in a recession:

1. Competition Will Intensify: Economic downturns invariably lead to a larger pool of job seekers due to layoffs and hiring freezes. You need to be as proactive and strategic as you can be in order to stand out from the crowd, and that starts with nailing your unique value proposition clearly and concisely.
   

2. Focus on Essential and Stable Industries: Certain sectors demonstrate greater resilience during economic contractions. I refer to these as "need" industries rather than "want" industries. Think of what you would be able to do without if you had to make your money stretch- healthcare, food, utilities, discount retail, state and local government, and essential services. Also consider industries like cloud services and software that help businesses improve efficiency or cut costs so they can remain stable during a recession. There are also certain services and products (think of PPP, hand sanitizer, videogame, at-home workout apps, delivery service, etc.) that thrive during downturns. Directing your job search towards these more stable areas can significantly improve your chances of securing employment.
   

3. Highlight Value and Cost-Effectiveness: In a recessionary climate, companies prioritize efficiency and cost savings. You’re either saving a company money or making the company money. When crafting your applications and preparing for interviews, emphasize how your skills and experience can directly contribute to the company's bottom line. Quantify your achievements with data and demonstrate your ability to streamline processes, reduce expenses, or generate revenue.
   

4. Be Flexible and Open to Diverse Roles: Given the current state of the job market and how much longer it’s taking to land a job (especially if you do nothing but apply and have no idea how to network), you need to come to terms with the fact that your ideal job will not materialize immediately. Remaining open to contract work, temporary assignments, or roles that are adjacent to your ideal career path can provide crucial income and valuable experience while you continue your search for a permanent position. Adaptability is key to surviving during times of economic uncertainty.
   

5. Network Strategically and Diligently: Networking becomes paramount during a recession. Many positions, particularly when companies are inundated with applications from not just qualified but unqualified applications, are filled through personal connections. Actively reach out to your existing network, participate in industry groups and events, and strategically leverage platforms like LinkedIn to cultivate new relationships. Informational interviews can be invaluable for uncovering hidden opportunities and gaining insider insights.
   

6. Sharpen Your Skills and Embrace Upskilling/Reskilling: Utilize any available time to enhance your current skill set or acquire new skills that are in high demand, especially within recession-resistant or growth-oriented industries. Online courses, certifications, and even free educational resources can significantly boost your candidacy. Focus on developing skills that enhance efficiency, cut costs, or drive revenue for potential employers. A word of warning though: Don’t use this as an excuse to not go out there and network. You need to do both!
   

7. Tailor Your Applications Meticulously: Generic won’t cut it. Make it easier for recruiters and hiring managers to move you to the interview stage by customize your resume for each specific job you apply for, explicitly highlighting the skills and experiences that directly align with the job description and the company's specific needs during an economic downturn. Demonstrate that you understand their challenges and offer relevant solutions.
   

8. Prepare Thoroughly for Interviews: You only get one chance to make a good first impression so that you can keep moving to the next stage to make another good impression. Practice your interviewing techniques, research common recession-related interview questions (such as, "Describe a time you navigated a significant challenge" or "How have you contributed to cost-saving initiatives?"), and be prepared to articulate your value proposition with clarity and confidence.
   

9. Manage Your Finances Prudently: Recognizing the potential for a recession, it is prudent to review and fortify your personal finances. Build a robust emergency fund, curtail non-essential spending, and proactively manage any existing debt. Financial stability will provide a crucial buffer and reduce stress during a potentially extended job search.
   

10. Stay Positive and Persistent: Even in a candidate-driven market, job searching can still be a mentally and emotionally challenging endeavor. It’s worse in a recession. Mindset matters. Maintain a positive outlook and unwavering persistence. Do not be discouraged by rejections. Instead, view each conversation, application and interview as a learning opportunity. Continuously refine your strategy, expand your network, and keep hitting the weekly metrics that you set for yourself.

All that said, if there’s one thing that you take away from what I just wrote, it is that there is no benefit to making decisions out of fear or panic. You shouldn’t do the opposite and pretend that nothing is happening either.

This is the time to channel your inner Spock and be as strategic as you can possibly be when making decisions.

Those of us who have weathered past economic downturns are living proof that you can navigate the upcoming recession and position yourself not just to survive, but to ultimately thrive in the evolving job market.

So, with that, let me borrow from Shakespeare's play Henry V: "Once more unto the breach, dear friends, once more".

Dezzi

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