Every recession is different, but there is one characteristic that has always been true so far: Unemployment rises when the economy is shrinking. You can't control the job market, but you can make the most of the opportunity to improve your job prospects both during a recession and for the long term.
The Bureau of Labor Statistics keeps official unemployment data back to 1948, and there have been a total of ten recessions since then. In every one of those ten recessions, the unemployment rate has increased, and in some cases has more than doubled.
How long will this last? It's hard to say. The last 10 recessions have averaged 10 months in duration, but have ranged anywhere from six months to 16 months. The last two recessions have been relatively mild, so the U.S. economy may now be due for a long one.
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If so, there are things you can do to fight back. If the job market is going to get more challenging, you may need to get more competitive by taking your career training up a notch. To help you do so, here are six career training strategies for a slumping economy:
Wait it out productively. Some experts say that a recession is part of the economic cycle, and you just have to wait it out. Rather than sitting back passively and waiting for things to get better, you should use this time productively -- especially if you've lost your job. Try to look at the economic slump as a blessing in disguise. People are often dissatisfied with their careers, but they just can't seem to find the time to upgrade their skills to improve their prospects. If a weak economy forces you to the sidelines, take it as an opportunity to continue your education. Pursue an additional degree or some new career training. These valuable tools could help you compete now and for years to come. The five remaining strategies will offer some thoughts on how to do that.
Update your skills. Just about every occupation these days has a technical component. As a result, often times it seems people just out of school have the edge over more experienced workers, because their skills are up-to-date. If you feel your job has been passing you by, this could be a good time to get some career training that will update your skills.
Retrain. This is the central point here. Economies don't just expand and contract. They go through disruptive changes which see some occupations rise while others fall away. If you've been working in a shrinking industry, use the slowdown as an opportunity to retrain for some growth sectors. The following are three sectors which are expected to have some fast-growing jobs in the years ahead:
Health careBetween an expanding population and an aging baby-boom generation, demand for health care is expected to keep growing, which means a growing job market. High-growth jobs include home health aide, medical assistant and physical therapist. Depending on your chosen occupation, you will need at least an associate degree, and in many cases, a bachelor's. Relevant educational fields include medical assisting, nursing, health science, physical therapy and occupational therapy.
ComputersNot only do more and more people use computers at work and at home, but it seems that almost everything we use is a computer. Our phones are computers, our cars are computers and the list goes on. The demand for computer experts goes on as well. High-growth jobs include network systems and data communication analyst, software engineer, and database administrator. An associate degree might get you into the field via a support functions, but a bachelor's degree is the norm for higher-level jobs. Relevant degrees would include software engineering, computer information systems, network systems administration and programming.
Financial planningIt may seem counter-intuitive to enter the financial industry at this time given the turmoil on Wall Street. There is a world of difference between the investment bankers who do high-stakes deals on Wall Street and the advisers who deliver mainstream financial guidance to everyday people. The latter field is a beneficiary of both the aging baby-boom generation and the financial crisis, which has sent people scrambling for help. Personal financial planner and financial analyst jobs are expected to experience high growth. A bachelor's degree or beyond is the norm for these professions. Relevant degrees include accounting, finance and financial analysis.
Upgrade your degree. The evidence is clear: Education pays. People with associate degrees earn more than people with just a high school diploma, people with bachelor's degrees earn more than those with associate degrees and so on. Moving up to a higher degree will make you eligible for more and higher-paying jobs.
Use government resources. One objection to going back to school is the expense, but there are various forms of financial aid available to help you out. The U.S. Department of Education Web site has information on various forms of financial aid and how to apply. Also, the Bureau of Labor Statistics Web site can give you career outlook information for just about any occupation.
Use online education. Online education is an ideal resource for tight economic times. It allows you to improve your career training no matter where you live. It enables you to get an education without incurring the cost of commuting to and from school. Also, online education lets you pursue a degree on a flexible schedule, so you can continue to earn a living even while you prepare for a better one.
Economists have noted that sometimes the country emerges from a recession better positioned for growth than before. You can do the same thing if you use this opportunity to improve your career training.
