What is a recession and what does it mean for your job? Here’s everything Gen Z needs to know

Welcome back to Keeping the Balance, a resource for young professionals navigating the changing world of work. Click subscribe above to be notified of future editions.

Recent headlines have told an unsettling story: We are currently in turbulent economic times. From a shaky stock market amid rising inflation to ongoing layoffs and rescinded job offers , some economists and chief executives are warning of a possible recession — though it’s not a foregone conclusion.

If you’re a Gen Zer like me, the largest recession we’ve lived through was the Great Recession — more than a decade ago. And at that time, many of us were around grade-school age. Simply put, we don’t have much recollection of it. So when we hear murmurs of a looming recession, we might not know what that is or how it could affect our jobs.?

The good news? The job market is strong. LinkedIn’s latest data shows hiring across industries is 10% above pre-pandemic levels, with national hiring up 9.8% year-over-year last month.

We are also no strangers to economic uncertainty. We are pandemic graduates who entered a job market that was upended and reshaped by COVID-19. Still, healthy economic indicators and our proven resilience doesn’t ease all of our recession concerns. Several Gen Zers recently opened up about theirs on LinkedIn.

“Just last night I was talking with a friend about how I’ve lived through a recession already (2008) but I haven’t actually *lived* through a recession — in the sense that I have no memory of personal fear/concern from back then,” writes Monique Driedger , who is a public policy intern. “The markets now are the first time I’m experiencing something like this both physically and cognitively.”

“At the start of the ’08 recession, I turned 9 years old. My mom, a mortgage broker at the time. My dad, a financial advisor. Not exactly the best roles amidst a housing and financial crisis,” writes Jake Bjorseth , who is a young founder. “I’m sure we had it better than others, but it had to have had some impact on my family. But my memory of it? Nothing.”

These sentiments are largely shared among Gen Z, so I wanted to speak with an expert to learn how to recession-proof your job and continue to grow your career in an economic downturn. But first, what even is a recession?

Austin Hankwitz and Christian Blackwell , the 20-something co-founders of Witz Ventures, help break it down.?

Everything you need to know

According to the National Bureau of Economic Research , a recession “involves a significant decline in economic activity that is spread across the economy and lasts more than a few months.”

What is happening in our economy to potentially cause a recession? Hankwitz explains the inflation side.

“If you think about how the price of any good is created, you think of supply and demand. If you have a steady flow of supply and a steady flow of demand, you get normal prices. But for whatever reason, we now have a terrible supply chain , so supply is very low,” he says.

At the same time, consumer demand is high. Due to stimulus checks, prolonged unemployment payments, the forbearance of mortgages and student loans and other pandemic-relief benefits, Hankwitz says people now have an abundance of money.?

“With this abundance of money, you now have a higher demand. And with a supply chain disruption, you have a lower supply. That is what has caused the prices of everything to increase like crazy,” he says.

To combat inflation, the Federal Reserve has hiked interest rates , which makes it more challenging for people “to take on debt to go buy things,” Hankwitz explains. The goal? If the Fed raises interest rates enough to curb spending, demand will decline , bringing prices back down.

“So by this demand destruction, through rising interest rates, we’re now going toward a recession,” Hankwitz says.?

While the Fed can take action to “bring things back to equilibrium,” Blackwell says it’s important to note that the central bank’s reach only goes so far.?

“They can absolutely crush demand. They can make it less advantageous to go get a mortgage on a house. But that doesn’t mean that they can fix the Ukraine-Russia situation ,” he explains.

?? Check out Blackwell’s and Hankwitz’s posts for more on why we’re headed for a recession and how to prepare.

How to recession-proof your job

Now that you know what a recession is, what does it mean for the security of your job?

“Sometimes when people hear the word recession, they automatically panic. They start to internalize it and think it’s going to impact them. That’s not necessarily going to be the case,” says Sarah Johnston , a career and interview coach who entered the workforce during the Great Recession.

Johnston has a few recommendations on what you can do now to prepare.?

First, be extra intentional about getting face time with people in your organization who can advocate for you, especially if you started your career remotely. Johnston says it’s not only important to have “internal champions,” but also a strong external network.?

“Start having informational meetings with people that are doing the work that you want to do or doing the work that you are doing so that you continue to build your network,” she advises.??

Second, write a resume so it’s ready to go if needed.

“A lot of people start to panic, and they think, ‘I’ll just write my resume when/if that day comes where I have to do it.’ But the problem with that is, once they get terminated, they lose their computer so they don’t have access to a lot of the information that they would need to build their resume,” she says.

Third, start saving so you have a financial cushion.

At the end of the day, Johnston says preparing for a recession boils down to focusing on what you can control, such as providing value to your organization, building relationships and keeping your skills fresh.

What a recession means for job seekers

What does all of this mean if you’re currently looking for work? Johnston says you might need to cast a wider net.?

“When there is a downturn economy, sometimes corporations go through hiring freezes ,” she says. “So when you’re job searching, you have to be more open-minded.”

Aside from targeting more companies, Johnston also recommends applying to roles in industries that are in need of workers, such as health care or the grocery and spirit industry.

While you might not land your dream job, Johnston says it’s important to remember that “every job is a learning opportunity” that can provide valuable experience to include on your resume.

This piece of advice comes from her own experience launching her career in the last recession. As a fresh graduate, Johnston says she found herself in a role that was unchallenging and lacked collaboration. However, she gained grit and skills that she now uses every day as an entrepreneur.

?“I remember feeling like my career was over and that I wasn’t going to do what I really wanted to do,” she says. “The advice that I would give to someone is, just because your career isn’t exactly where you want it to be at 22 or 23, doesn’t mean it’s over. Your career is a journey.”

?? What steps are you taking during this time to continue growing your career? Share your thoughts in the comments below.

?? For more advice on how to navigate a possible recession, be sure to subscribe to the Get Hired and Get Ahead newsletters to be notified of upcoming editions.

Getting a pulse on Gen Z

• Gen Z wants big bucks, and chill | Alessandra Riemer : If there’s one generation that’s never going to settle for anything but “it all” – it’s Gen Z. For the many that came before those born between 1997 and 2012 – hustle culture was all about grinding in your dream job, in hopes of eventually moving up the ladder and raking in the big bucks. But Gen Z workers “are insisting we write a new script for work,” says BBC . After watching their parents burn out and face financial hardships – they’re not taking a job unless it means “bigger pay checks, more time off, and the flexibility to work remotely...” If they don’t get all that? They’re out the door. Here’s what people are saying .
• Sharing salary ranges is catching | Cate Chapman : More big companies, including Microsoft (LinkedIn’s parent company), are publicly sharing salary ranges for open roles, a move that’s likely to influence smaller firms downstream. The trend is worker positive, according to Axios, because it not only saves job hunters the trouble of applying for posts that pay outside of their desired range, it gives leverage to marginalized groups in seeking equal pay. LinkedIn data shows that, as of April, the number of postings on its site that included salary ranges rose 44% from a year earlier. Here’s what people are saying .