Recession’s impact everything from the cost of daily goods to the job market. Many experts agree the United States is either in a recession or headed toward one. Even if the country avoids a recession in 2023, you will have to face one and see how it meshes with the open positions you need to fill while staying on budget at some point.
Business owners everywhere have seen some unique factors since the pandemic. First, they had to work hard to adapt how they filled orders and interacted with customers. Next came the change in spending habits. Finally, the job market has been tight, with more open positions than people seeking jobs. Could a recession shift things in favor of small business owners?
1. Fewer Unfilled Positions in Certain Jobs
National Public Radio reports that the job market remains tight, even as some big companies announced cuts. The unemployment rate in April 2020 sat at 14.7% but is now around 3.5 percent.
However, some sectors are still having difficulty finding and keeping employees, thanks to the gig economy and people’s shifting priorities. No longer are workers willing to put their lives or health on the line for low pay and difficult working conditions. Many restaurants and retail establishments need help finding and keeping workers.
2. Better Retention in Others
The job market in a recession may raise concerns for workers, so they could be more likely to stick with an employer they can count on. People are well aware of rising costs and interest rates, and how the current economic issues could impact the country as a whole.
Put yourself in the shoes of the average worker. Rather than leave a stable job with a steady income, they are more likely to stick with you even if they are not 100% happy. Your job is to make the work as pleasant as possible and work as a united front. Others will see how satisfied your employees are and you may attract top-notch staff.
3. Builds Careers Rather Than Paychecks
Most job candidates have a set of career goals they would like to achieve. Look for ways to lift up workers, offering training and educational opportunities to build them into powerhouses that serve your firm well.
A fair pay rate is attractive to people, but they will also look at how they can rise in the ranks before taking an offer. Are there opportunities for advancement? Will the enterprise pay for college courses or certifications?
Lay out the details in a straightforward checklist. People who are on the fence about whether to take a position with you or someone else may be swayed by the finer points, such as how much you invest in your employees.
For many years, Amazon, Cisco and AT&T have invested in upskilling their workers and paying for college courses that apply to the job. However, some additional brands are jumping on boardin the tight economy. Starbucks highlighted their commitment to their baristas’ futures in November 2023 with the Starbucks College Achievement Plan. This is a program with Arizona State University to create a bachelor’s degree geared to the company and the work performed there. All tuition and fees are paid for partners.
4. Develops Methods for Overcoming Volatility
The job market in a recession can have a lot of ups and downs. Brands might hire new people or turn around and lay off workers, so people are going to look at which positions seem most stable before choosing who to work for. In a tightened job market, they may not feel confident about startups and companies without a proven record for fear they will lose their position and be unable to pay bills.
Workers might be reluctant to go with an unknown brand for fear the recession could cause the business to close its doors. At the same time, the post-pandemic world is a unique place. People are less willing to toil their lives away without appreciation or reward. They may be looking to go where their skills are celebrated and thus will consider smaller brands as an option.
5. Opens New Workplace Opportunities
The U.S. Census Bureau reports the average one-way commute time is 28 minutes. Offering remote options is one way to attract top skills in the industry. People are looking for an opportunity to work from home — they might consider slightly lower pay or fewer benefits if they know they can save money on fuel, clothing, and lunch costs.
A recession may have less impact if younger or lower-income workers can afford a vehicle and all the maintenance costs involved. Those in rural areas are far from a bus line or where they can access public transport. Rather than scrambling to find people to fill positions, consider letting those who can do the tasks from home work remotely.
Most studies show productivity rises when workers can work from home. You will have to decide if remote work applies to your employees or will improve the job market for your organization.
6. Diversifies Skills
During a serious downturn, you may have to lay off some of your workers. Ensuring everyone can do multiple jobs in the company prevents downtime that could further harm your operations. Rather than train people for one position, look for ways to diversify their skills.
Cross-train them on multiple jobs. If you run into a situation where you have open spots, you can focus workers on the most crucial elements without missing a beat. For example, if someone is trained in marketing and customer service, shifting their attention to customers during the busy holiday season makes sense. Should candidates opt for bigger companies out of fear you will have layoffs or struggle during lean times, you can still fill crucial openings from your current worker pool.
Off educational opportunities, in-house workshops, and ways for employees to learn and stretch beyond their current capabilities. Even if you have to cut positions because of the recession, you will have a core base of workers who can do any job in the company.
Create an Agile Recruitment Plan to Avoid a Recession’s Impact
Some of the biggest changes in 2022 and 2023 involve how frequently businesses use artificial intelligence and machines to complete tasks. If you want to keep positions filled and attract top talent, you have to be ready to pivot your job marketing. Look for people who are lifelong learners rather than only those with a set skill. Jobs as you know them today are changing — your workforce should be prepared to face those challenges.
As boomers have aged out of the workforce and Gen X is looking toward potential early retirement, positions keep opening up that need filling. Even though a recession looms and the cost of goods keeps rising, the impact on the job market seems minimal.
Eleanor is editor of Designerly Magazine. Eleanor was the creative director and occasional blog writer at a prominent digital marketing agency before becoming her own boss in 2018. She lives in Philadelphia with her husband and dog, Bear.
