Steps to Take Immediately if Concerned About an Economic Downturn in Your Career
In the current economic climate, it's essential for workers to take proactive steps to safeguard their jobs and enhance their career prospects. Here are some strategies that can help you increase your perceived value at work, maintain connections, and prepare for potential job loss.
One way to reduce the chances of being laid off is by making oneself indispensable to the employer. This can be achieved by being the person people rely on when it matters, taking on key projects, and aligning suggestions and actions with your manager's most urgent priorities.
Building human connections is also crucial for landing a job, as research shows that more than half of hiring involves people talking to people. Reaching out to former colleagues and establishing new contacts in your field can be beneficial, even when not in need of a job. Maintaining these connections can be as simple as sending a quick email or LinkedIn message, commenting on their posts, and meeting for occasional coffee.
The job market is often a lagging indicator, turning sour only after other parts of the economy have tumbled. It's important to stay informed about industry trends and economic indicators. For instance, in 2021, rising initial jobless claims peaked around October, reflecting some labor market instability. However, concrete probability estimates for that year are not directly provided by the data available.
Career experts note that conditions differ from industry to industry, with layoffs already rising in the technology, finance, and retail sectors. Two in five workers are personally worried about losing their job in the next 12 months, according to a 2025 study by the American Psychological Association.
Preparing for potential job loss involves refreshing your branding, updating your resume, LinkedIn profile, and professional website. Identifying a new project to boost revenue or positioning oneself as the go-to person for a new technology or key client relationship can increase perceived value.
Boomerang employees, those returning to a former employer, now account for 35% of new hires. Former employers can be a good target for a consulting gig that could lead to a new job. Turning a hobby into a lucrative side hustle or working as a consultant in your field can provide extra income during job-search.
Learning a new in-demand skill, such as understanding the impact of AI, can also increase perceived value. Many forecasters have moderated earlier ominous projections about the economy, with Wall Street firms such as Goldman Sachs and J.P. Morgan lowering the estimated risk of recession this year to 30% to 40%.
However, nearly two-thirds of Americans believe a recession is coming, according to LendingTree. It's essential to stay vigilant and adaptable in these uncertain times. The steps taken to protect your job now will help you advance professionally no matter what happens with the economy.
