Best Recession Industries

Work in the Best Recession Proof Industry

During a recession it is critical to be employed in a stable sector of the economy. Typically, this means a company that sells necessities, rather than luxuries. Recessions cause consumers, businesses, and governments to cut back on spending, hurting revenues. The first to suffer are high-ticket luxury goods and services – travel, airlines, resorts, jewelry, luxury automobiles, high-end clothing, expensive restaurants, etc. However, consumers can only cut back their spending so far.

Demand for necessities such as food, clothing, healthcare, fuel, transportation, and low-cost entertainment remains the same in a recession. Sometimes demand even increases as high-end buyers shift their purchasing to discount goods and services. These are the best recession industries with the most recession proof jobs.

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Seeking employment in a recession proof industry such as those below is a good bet, whether you are looking for a new job or a career switch:

Biotechnology: When the major industrial companies are suffering investors move their capital to areas that have a potentially greater return. Biotechnology companies are not correlated to the overall market because their discoveries and cash flows are based on the success of scientific research and government approvals, rather than regular economic cycles. During recessions, biotechnology companies get investment capital that would otherwise be sitting idle. Biotech companies are full of recession-proof jobs.

Casinos: You might think casinos would be the first to suffer in a recession. In fact, the opposite is true – financial stress drives people to seek entertainment. This leads people to gamble and to escape their everyday burdens. When other businesses suffer in a recession gambling houses continue to earn strong cash flow. Card dealers, security, maintenance, and other jobs at casinos are good places to look. (NOTE: The credit crisis has made it difficult for big casino destinations like Las Vegas to get financing and they have lost many jobs. However, smaller casinos, card houses, and indian reservations are still doing well despite the difficult economy. This is a good recession proof industry.)

Consumer Entertainment: Instead of taking big trips during recessions, families tend to stay near home, rent movies, buy video games, and watch television – in other words, cheap entertainment. Movie rental, video game, and TV cable companies do well. This is the #2 recession industry.

Consumer Finance: When a recession occurs, governments normally react by lowering interest rates. This causes a wave of refinancing of existing high-interest debt as borrowers replace credit card, commercial loans, mortgage debt, and leases with lower cost loans. This creates opportunities for mortgage brokers, loan professionals, and credit analysts. The rise in defaults and bankruptcies creates new opportunities in credit counseling, bill collection, and portfolio management. This is #3 among the best recession industries. (NOTE: The credit crisis has reduced the level of new loans, but surviving banks and other financial institutions are stabilizing and there will be many new opportunities in this sector.)

Food and other Consumer Staples: This is the most basic commodity of all and is the #1 recession industry. Supermarkets, agricultural producers, food and beverage distributors, convenience stores, and fast food restaurants, and cigarette companies all weather recessions well.

Healthcare: Medicine is a basic necessity, and endures through thick and thin. Despite the fact that hospitals and other health providers come under the same economic pressures as the rest of the economy, people always need basic healthcare from checkups and emergency room visits, to prescriptions and operations. The healthcare industry is one of the top 5 employers in most countries, providing a wealth of job opportunities, and is among the top recession industries.

Home Improvement: Families tend to stay home during recessions. They become inspired to fix and improve their homes with their extra time. The tax code provides incentives to borrow for home improvement projects, because the interest paid on home improvement loans is tax-deductible. Hardware, gardening, and home improvement companies profit as a result.

Law (especially litigation): As local economies suffer, an increasing number of businesses stop paying their bills, break contracts, and defraud customers in an effort to stay solvent and profitable. Business and personal bankruptcies increase significantly. This gives rise to a wave of litigation, providing opportunities for expert witnesses, investigators, paralegals, consultants, clerks, and of course litigation attorneys.

Security and Defense: Crime increases significantly in recessions. Companies offering investigative, protection, and security systems increase their sales as home and business owners protect themselves. Recessions often lead to war or terrorist attacks. Presidential decisions to go to war become more likely. Crime and war stimulates the defense sector of the economy as the government spends billions to buy weaponry and logistical services. This increases the demand for engineers, sales, management, and manufacturing jobs at security and defense companies. Security and defense is a good place to find a recession-proof job.