Top Worst Jobs in a Recession

Stay out of these top 10 bad jobs!

One of the keys to surviving a recession is to recognize when you are in a bad job, one that probably won't survive in a recession, then take action to protect yourself. The most effective action you can take is to move from a risky bad job into a safer one.

Top 10 Bad Jobs

1) The first jobs to get hit at the beginning of a recession are in the luxury goods and services. This encompasses tourism (hotels, restaurants, and resorts), high-priced goods such as premium quality European and Japanese sports and luxury cars, jewelry, and clothing, and exclusive services such as spas, high-end fitness, and beauty. As consumers begin to feel pressure on their ability to purchase expensive goods and services, they quickly eliminate unnecessary ones and replace necessary items with lower-priced value substitutes.

2) Another one of the top ten worst jobs that falls off quickly at the onset of a recession is labor recruiting (headhunting). When companies stop hiring, they no longer need the services of outside recruiters. In addition, the available labor pool increases quickly, making it much easier for companies to hire specialists that are difficult to find in rapidly growing economies. Stock Brokerage also suffers badly during recessions.

3) Investors that poured money into the stock markets pull it back out to pay off credit card balances, or stop trading as they watch their holdings drop in value. As a result, both traditional and online brokers suffer drops in commission and advisory revenues, leading to major layoffs.

4) For the same reasons above, investment banks also suffer badly during recessions, as business combinations, new IPOs, and new financings drop. Without these lucrative transaction fees, the institutional finance sector typically lays off thousands of workers.

5) Another area that is well known to have the top worst jobs in a recession is leasing, including vehicles, heavy equipment, computer hardware, and commercial or residential real estate. This is caused by drops in demand along with falling interest rates which make purchasing (vs. leasing) big ticket items significantly cheaper.

6) technology hardware companies are hit hard in recessions because large corporate purchasers tend to cut major capital expenditure projects.

7) Consumer electronics retail is another one of the top ten worst jobs during a recession. Not only does the retail sector tend to take a hit, but high-margin TVs, stereo systems, cameras, GPS, and thousands of other products quickly stop selling. Combine that with the high cost of retail space and long term leases signed during the previous economic boom, electronics retail stores suffer badly.

8) Resorts, including skiing, spa, and beach resorts are a luxury item which travelers quickly stop paying for in exchange for "staycations" at home.

9) Real estate normally takes a big hit during recessions, so it's always one of the top 10 bad jobs. This includes homebuilding, real estate management, and broker/agent. Even though interest rates drop which makes home loans more affordable, the loss of jobs in the local economy and people using their extra cash to pay bills takes them out of the real estate market.

10) Finally, architectural design business drops off significantly in recessions. This is caused not only by the drop in real estate markets, but also the drop in government tax revenues, which causes the cancellation of many major public building projects where architects earn their livings.

If you are in any of these sectors and are in a position potentially at risk, it is imperative that you move to a safer industry at the beginning of a new recession. Once the recession begins to ease up and the economy grows again, these top bad jobs become top good jobs again.

To prevent getting laid off and losing your income next time there is an economic recession, consider getting a job in a recession proof industry.

The optimum time to change jobs is the first round of layoffs—earlier rather than later is best. These first layoffs are rarely deep enough and tend to occur several times, making it increasingly difficult to find alternative employment if you wait too long. You may even be able to negotiate a financial departure package by approaching management early with a reasonable offer. Nevertheless, if you miss the first wave or didn't take that package in the hope that "things would get better", you are still at risk. If the recession is protracted your timing doesn't really matter as these industries often downsize by 50% or more over several years just to stay alive.