Which industries in the US are most resilient to recession according to economists

There are industries that are more resistant than others in times of recession and that have a greater capacity to avoid layoffs and freezing new hires, according to economists.

Much has been said about the US economy going through a recession, causing instability in the stock market and that some companies are beginning to prepare for the worst with layoffs and hiring freezes.

There are warnings that a recession is imminent and has reached a fever pitch, with inflation at record highs still soaring. In this context, CNBC Make It revealed the industries that are more resistant.

The labor market is undergoing changes after months of strong job prospects and rising employee wages, conditions that are sure to change in a recessionary environment.

Which industries in the US are most resilient to recession according to economists

“The job outlook is going to get a lot worse” in the coming months, Laurence Ball, an economics professor at Johns Hopkins University, told CNBC Make It. “The question is, ‘How much worse?'”

No job is completely recession-proof, but certain industries tend to underperform others during tough economic times.

In the recession experienced between 2007 and 2009, the construction and manufacturing sectors experienced considerable drops in employment, according to data from the Bureau of Labor Statistics.

“People tend to limit their discretionary spending and delay big purchases, including new cars and homes,” said Karen Dynan, an economics professor at Harvard University and former chief economist at the US Treasury. The economist points out that these industries they will see similar patterns if a recession happens soon.

Ball and Dynan agree that the most “recession-proof” industries that offer the most security include those in the following sectors:

  • Health care
  • Government
  • Computers and information technology
  • Education

Ball explains that the common point in these industries is that they are less sensitive to changes in interest rates, and people depend on these services “whether the economy is booming or in recession.”

Read: Expert warns that the United States is headed for a very serious recession

The specialist expects that there will be greater demand for personnel in educational institutions, since more people may consider higher education as a way to acquire new skills and improve their job prospects.

“People are more likely to go to college if the job market is bad,” Ball said. “And if you’re graduating from college and the job market still looks bleak, graduate school becomes much more attractive.”

Dynan considers it important to hone professional skills during these periods in order to be a more competitive and valuable worker: “Learning what skills employers are looking for and being able to perform those skills well is your best insurance.”

If you like this article about Which industries in the US are most resilient to recession according to economists, you can continue reading and also follow us on our social networks on InstagramFacebook and Twitter.

Leave a Reply

Your email address will not be published. Required fields are marked *