Unemployment tends to spike during a recession, potentially adding more uncertainty to already-tough economic times. Fortunately, there are ways to make yourself more likely to keep your job or get hired for another one—or to diversify your income streams, so you’re not reliant on a single source. If you’re open to more significant change, you could also pivot to an industry that may have more recession-proof jobs. Here are some ideas for protecting your career and income, no matter what the economy is doing.
How to help recession-proof your career
Whether or not you face job uncertainty, these strategies could help you at work.
1. Build and sustain your professional network
It could pay to stay connected with former colleagues, other people in your industry, and folks in your community in addition to current coworkers to get a sense of what job opportunities are out there, says Andy Alvarez, CFP®, a vice president and branch leader at Fidelity Investments. You never know who might hear about a new role that’s right for you—even if you’re not actively job searching. Just be sure to regularly catch up with your network and offer to help them too, not just when you need something.
2. Keep learning
“Find ways to set yourself apart from what could be a very large field of individuals” who all might be looking for the same jobs at the same time, suggests Alvarez. Workshops, online courses, and certifications could boost your knowledge and skills. Sharing with your manager that you’ve taken these on could also help keep your job more secure—the more you know, the more you could possibly help the business. In some cases, depending on your company’s health, these moves could potentially open you up to promotions, raises, and new opportunities too.
3. Diversify your skill set
Beyond courses, you could offer to help out on other teams’ projects or shadow colleagues who do something totally different from you. You could even volunteer with an organization or your child’s school, taking on new-to-you tasks, such as event planning, graphic design, fundraising, communications, or project managing. These experiences could help to qualify you for more job opportunities or help you stand out in a crowded candidate pool.
4. Look into recession-proof jobs
If you’re not sure your current role will last, you could consider pivoting to a position you think may be more stable. “Most individuals throughout their career are building skill sets that are incredibly transferable,” says Alvarez. “If I were in an industry that I felt was shrinking, I would try to understand where my skills might transfer to.” Though no one can predict which industries will be impacted least in the next recession, jobs providing necessary services could remain in demand.
How to help secure your income and cash flow
1. Analyze your expenses
A good idea anytime, but particularly when a downturn may be on the horizon: “Understand what your essential expenses and your discretionary expenses are,” suggests Alvarez. Then, he adds, ask yourself: “What would I be able to give up if my circumstances changed?” Pay attention to spending categories like entertainment, clothing, and subscriptions or memberships to find expenses you may be able to eliminate or downgrade quickly to free up cash when you need it.
2. Check on your emergency savings
An emergency savings fund—sitting in an easily accessible account—with 3 to 6 months’ worth of necessary expenses can help to cover you if you lose your income. If you’re not quite there, or are living paycheck to paycheck, “you might need to start thinking about saving some additional cash,” says Alvarez. Review those changes you’ve identified that can be made immediately. Other ideas: Maybe you can alter your habits to lower your energy bills, spend less on restaurants, or save at the grocery store.
3. Sell your things
Offloading unwanted stuff could bring in extra income, and there are online platforms you could leverage, says Alvarez. Do some research to get started. Figure out where you could get the best price for the lowest effort for clothes, video games, furniture, and whatever else someone might want to buy. Here’s more about how to make money from reselling.
4. Rent out your things
Got a spare room? A corner of your garage for storage or extra parking? Somebody might pay you to use it. People also might want to borrow bicycles, power tools, and other bulky items they might not have space in their homes to keep. “Just be honest about what you’re willing to do for the extra income,” cautions Alvarez. Check out considerations for renting out your stuff.
Read more from Fidelity Smart MoneySM: 13 ideas to make passive income
5. Consider a side gig
When you’re gainfully employed, doing more work in your downtime might not rank highly on your to-do list. But the experience and income could come in handy if you lose your main job. The trick is to do something profitable that doesn’t feel like work. “If you love home design, maybe you could help clients redesign a kitchen or bathroom,” says Alvarez. “I love to play tennis, so I could coach or give tennis lessons on the side.” You might find a match in these 20 side gig ideas.
6. Know where to get money in a pinch
Sometimes you may need more money to stay afloat than you have saved or can earn on the side. Taking time to understand what sources of cash you may be able to tap—and what order it’s wise to tap them in—may be important to consider. “Many companies’ retirement plans offer the ability to take hardship loans or withdrawals1 from accounts that you might not even realize you have access to,” points out Alvarez. “There are rules and tax considerations, but it’s important to explore all your options you might have available.”