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As fears of a recession grow and layoffs and hiring freezes become more prevalent across all sectors of the economy, it’s no wonder many Americans fear losing their jobs.
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Inflation and market volatility triggered a series of layoffs at several companies. Tech giants such as Microsoft, Google and Apple announced they were taking preemptive action by planning to slow down hiring next year, while others, such as Netflix, announced layoffs.
Crypto firms, many of which had been in full hiring for just a few months, also announced layoffs, and Ford said it would cut 8,000 of its employees in the coming weeks, according to Bloomberg.
In such an uncertain climate, being proactive is the best way to go, and there are a few steps one can take to plan ahead in the event of a layoff. Aleksandr Volodarsky, CEO of Lemon.io, an independent online marketplace for software developers, shared some tips to better prepare. For example, try to diversify sources of income.
“Diversifying income sources is the strategy itself. Diversification depends on each case. Someone may land a consulting job, some may be part of the sharing economy (Airbnb, etc.), and some may invest or buy a cash flow business. Nobody is bulletproof, but by diversifying, you’re not as sensitive as those who only rely on a 9 to 5 salary,” he told GOBankingRates.
Another advice is to look for signs of trouble in businesses, he said, especially when they are not adjusting to a new reality.
“That doesn’t mean companies have to cut all costs and keep the lights off, but becoming more capital efficient will extend your trail, and you can win just by still being alive when the recession ends,” he said. -he declares. “If the company is not sufficiently transparent, employees should ask their manager a fair question: what measures is the company taking to adapt to the recession. With this information, they can decide if they feel safe or not.
A third tip that some experts recommend is to invest in the gig economy. With inflation at 9.1% in June, many Americans are already turning to it. The 2022 Gig Payments report, published by labor payment platform Branch and card issuer Marqeta, found that 85% of respondents have recently increased their on-demand work or plan to increase it , with 45% citing inflation as the main reason for doing so.
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Pawan Gupta, CEO and co-founder of Fashinza, told GOBankingRates that things tend to move quickly and change from week to week. While this may cause some to want to constantly change with the weather, many events are beyond our control.
“What’s in our control is being wise about the moves we make. Situational awareness is essential. It is important to fully understand what is happening and whether it will affect you in the short or long term,” Gupta said.
In turn, Gupta said two of the most important things you can do right now are invest in your skills and expand your network.
“By becoming irreplaceable, you are an indispensable asset to your company, your team or your customers. While not all jobs are at risk, companies will always need proactive problem solvers, dynamic thinkers and innovators, especially in times of crisis,” Gupta said.
He added that having a good idea of what are considered transferable skills, and then learning and applying them, is a great safety net. “The fastest growing jobs require transferable skills: healthcare, project manager, business development, among others,” Gupta said.
Finally, tapping into, expanding, and nurturing your network is something Gupta considered the “golden ticket to some level of security.”
Paul Lewis, Chief Client Officer at Adzuna, told GOBankingRates that while it can be difficult to completely recession-proof your career, you can certainly take steps to set yourself up for as much success as possible. He recommended focusing on skill development by looking at the job market and seeing the demand that you could excel in and fuel your passion.
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“There are many ways to learn skills beyond a traditional college program – online coding courses, certifications or other means can help you acquire skills that will make you marketable for a wide variety of jobs and industries. Taking classes outside of work hours is a great way to build on your current skills while earning a steady paycheck,” Lewis said.
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