- US unemployment has reached a 14 year high of 6.5%
- Yesterday, 4,000 jobs were lost in the UK alone; many fear unemployment could rise to 2 million by the end of the year, with further rises in 2009. [UK Unemployment]
What Kind of Jobs are Safe in a Recession?
- Economists - There is always a demand for economists to explain why we got into this mess (even if Economists mostly failed to predict it)
- Sheep Shearer. Sheep Shearing is the number one on the UK's list of shortage occupations for our new immigration rules. [link] If you hold a British Wool Marketing Board bronze medal for Sheep Shearing, this recession will easily pass you by.
- Other shortage occupations include: ballet-dancers, horse-trainers, geologists, petrophysicists, high integrity pipe-welders and chefs. I can just see all those hedge fund managers retraining as chefs, horse-trainers and ballet dancers.
- Traffic Wardens. Alas parking tickets are not subject to cyclical fluctuations.
- Teachers / Health Sector
- Sales Representatives. This might sound strange, but, in a recession companies put more emphasis on sales techniques to try and get those extra sales and pull the company through
- Accountants. In a recession, you still need to do your books and fill in your tax returns. Often companies hire special accountants - to increase efficiency, which is invariably a metaphor for 'restructuring the workforce'
What Kind of Industries Benefit from A Recession?
- Gambling / Pubs / Light Entertainment. It is suggested in a recession, people look for light distractions such as going to the pub. People don't spend on big ticket items like foreign holidays, but they will go down their local to drown their sorrows.
- Thrift Shops / Pawnbrokers. Marks and Spencers food department is struggling in the current recession. But, well known value supermarkets like Netto and Aldi are booming
- Domestic Tourist Industry. Rather than fly off to exotic locations, people may look to local tourist destinations.
- Some people even argue recessions are beneficial (although I don't see their reasoning) see: Are recessions beneficial