Should You Switch Jobs During a Recession?

A recession is predicted for 2023, so what does that mean for job seekers? You know yourself best, including whether it’s time to find a new job — for example, when you seek career growth or need to leave a toxic environment. When navigating a job search during a recession, career experts recommend the following four steps: be open to different industries, follow trends, ask questions and lean on your network.?

By Mariah Flores

Economists are still confident that a recession will occur in 2023 .?

And though there are some “encouraging takeaways” from the economists surveyed by The Wall Street Journal , namely that inflation will continue to ease through the year into 2024 and the predicted recession will likely be rather brief, now is the time to prioritize and assess your career. What are the ways you can best prepare professionally for a recession ??

The answer will be different for every person, but it could involve a possible job switch — even in the face of an economic downturn.

Now, you may wonder if this is a wise move.?

“It depends,” states 2019 LinkedIn Top Voice and founder of Briefcase Coach , Sarah Johnston .?

If you do find yourself embarking on this journey when recession strikes, two career experts, Johnston and 2022 LinkedIn Top Voice and career and confidence coach Jasmine Escalera, Ph.D ., share their top tips.?

Recession or No Recession, You Know Yourself Best

You shouldn’t write off switching jobs during a recession, especially if it’s your best option.

“Should you [search for a job] during a recession? I believe yes because the reason why you want to job search is because you're potentially feeling as though your career is stalling, and you need movement, so you should get that,” says Escalera.?

“You should get exactly what you want in terms of growth and opportunities.”

Your job search may also be sparked by a current job or career path that no longer serves or fits you. “It's not connected to your passions or strengths, you might be bored, and therefore you should find a new opportunity,” she notes.? Or maybe you need to leave a toxic workplace , something Escalera says no one should ever deal with.

Perhaps, like Johnston during the Great Recession, you’re in search of an industry or job with better stability.?

“Employees who don't have an appetite for risk or who financially need a stable income (i.e. most people) may desire a position at a company they perceive to be more stable or experienced in weathering difficult times. During the Great Recession in 2008/2009, I left a 50% commission job to work for a public university. I wanted state benefits and consistent income.”

Ultimately, you’re the one in charge of deciding when and why to switch jobs, whether it’s for career development or in search of better workplace culture . But never let a recession be the sole reason you stay in a job.?

“The reason why you are job searching should never be neglected, even if we are in a recession,” encourages Escalera.?

You’ll gain a much-needed sense of purpose by embracing the reason (or reasons) for your job search. Because let’s face it … finding a new job is not effortless.

Navigating Your Recession Job Search

Changing jobs at any point in time is no light matter, but add in the uncertainty and instability of recession … and your job search can start to get a bit complicated.?

You may deal with new hurdles, from hiring freezes to having to assess a potential employer’s financial situation. That being said, it’s advisable to enter your job search having done some research, regardless of economic happenings. Both experts provide simple steps you can take to better navigate your job search during a recession, outlined below:?

Be Open To Different Industries

As mentioned, your current industry may not be the most “recession-proof ” or the best fit for you, so consider different industries that typically have some resilience during economic downturn.

“[M]ake sure to do your homework and try to find those industries, and see if there are ways that you can actually create your brand or make your brand more suitable to those. Look at your transferable skills, look at the work that you've done, and see how you can reframe your brand [and] your resumes to industries that might not be as affected in the recession,” suggest Escalera.

Five industries that tend to remain stable during downturns are utilities, government, education, consumer services , and healthcare . And despite massive layoffs, don't count the tech industry out as another option.?

Follow the Trends

Layoffs are top of mind for many professionals.?

Job searchers need to be very aware of how prospective employers are faring during recessions. Escalera poses a key question you need to answer before applying for a job: “Are they [companies] affected by the recession?”

Check headlines, track news of recent layoffs , plug company names into LinkedIn’s search bar to see if other members have shared their personal layoff stories — all to feel out a company before agreeing to work there.?

“It's important to be aware of market trends and conditions before making a career move. You should always do your research and try to assess if the company is in a healthy financial position,” advises Johnston.

Ask Questions

You can do all the research in the world and still lack the full picture of how prospective employers are faring during times of economic uncertainty.?

The interview process is your time to “evaluate how a company will weather an economic downturn” in addition to your initial “micro-level research”, says Johnston.?

“Often, the past is a good predictor of the future. If the company has a history of layoffs, that could be a red flag … If the company is public, I recommend listening to the earnings or investors' calls and reading the headlines. Evaluate how — on a micro level — this information could impact your department or your role.”

And this step goes for all companies. However, startups can certainly be unpredictable during a recession, making them less attractive employment options right off the bat.

“If the company is a startup, you will want to really understand their financial viability,” she says. “You need to know if they will be able to maintain their employees if securing venture funding falls through.”

During an interview, Escalera encourages you to not be afraid to ask questions regarding how the company approached the recession and the impact it’s had on them, like if they’ve had to let people go.

“[R]eally get very integrated in how they're actually handling the situation. You want to make sure that if you're stepping into the company, that they have a plan for how they will tackle any issues due to the recession. So don't be afraid to ask questions.”

Lean On Your Network

A step that almost goes without saying is networking .?

You can glean firsthand information about how specific companies or industries are doing during a recession. Plus, you never know who in your network has the exact knowledge needed to refine your job search, help you “get more strategic in your job search,” and hopefully land a job, states Escalera.

“Connect to people in your field, join some professional organizations in your field and area, and really get connected to individuals and ask questions about how your field or area is doing during the recession.”?

Jobs are available , despite all the layoff or recession headlines, so don’t let fear stop you from pursuing another job.?

“And you are not competing with the X number of the laid-off positions for a single open position. You are competing with a small pool of candidates. Your job is still to make yourself the most desirable candidate for the position that you are interested in,” Johnston says.?

Top Takeaways?

Should you switch jobs during a recession?

• Economists are still predicting that a recession will occur in 2023 , possibly leaving you with many questions regarding your career. Now is the time to prepare professionally for a possible recession, including finding a new job if needed.?
• You should never let a recession stop you from finding a better opportunity. Common reasons you may be searching for a job include lack of career advancement, toxic workplace, or needing to find passion at work.?
• If you do decide to find a new job during a recession, be sure to do your research. Explore different “recession-proof” industries, follow market trends, ask questions (especially during interviews) and lean on your network.?
• Companies are still hiring , so you want to give yourself the best standing when looking for a job at any time.??