Impact of Global Recession on Economy and Jobs in 2023
by Akash Raj | 2023/03/09 | Data Science, Career
The world in 2022 is going through a phase called “permacrisis”. It is the phase of a long period of instability. Scholars across the globe are predicting that this phase is a symptom of the upcoming global recession in 2023. A recession is characterised by a severe, long-lasting, and pervasive decline in economic activity.
There are many reasons supporting this bad pulse. Russia’s invasion of Ukraine has triggered the biggest land war in Europe since 1945, after the Cuban missile crisis, the greatest threat to nuclear escalation exists now and the largest sanctions regime since the 1930s. Many countries are facing the highest rate of inflation since 1980 with soaring food and basic amenities costs. With this demand for professionals, job stability and financial security- have all been simultaneously shaken.
Will there be job cuts?
A potential global recession 2023 is a big red flag. With inflation soaring in most parts of the world, central banks have been scrambling. The central banks all over the world have been attempting to control it since March. They are continuously increasing rates so as to tame the consuming tendency by making everything costlier. But what comes with it is that it will eventually trickle down to low economic growth and loss of jobs. Jobs are anticipated to be cut in the second and third quarters as a result of slower growth and weaker profits. In the organised sector, Indian IT companies rank among the biggest employers. Their growth projections will undoubtedly be impacted by any global economic trend. All these are responsible to their investors. So, the management carefully considers staff headcount when trying to reduce expenses and maintain profit margins. Although there isn’t yet a clear trend of job cuts in India, there are a few indicators.
A look at historic recessions
May 1937-June 1938
- Duration: 13 months
- Peak unemployment rate: 20%
November 1948–October 1949
- Duration: 11 months
- Peak unemployment rate: 7.9%
The M*A*S*H* Recession: July 1953–May 1954
- Duration: 10 months
- Peak unemployment rate: 5.9%
The Investment Bust Recession: August 1957–April 1958
- Duration: Eight months
- Peak unemployment rate: 7.4%
July 1981–November 1982
- Duration: 16 months
- Peak unemployment rate: 10.8%
December 2007–June 2009
- Duration: Eighteen months
- Peak unemployment rate: 9.5%
5 Recession proof jobs
A growing economy is adored by all. The economic cycle is still referred to as a “cycle” for a reason. No matter how successful an economy is, it will occasionally experience slowdowns, recessions, or outright depressions. Consumers cut back on non-essential spending, businesses reduce non-essential spending, and even the government is restricted in recruiting when the economy is struggling.
Of course, everyone wants to secure those jobs which will shield them from these fluctuations in the economy. Financial Security is the most important requirement for anyone pursuing a professional career, particularly during difficult economic times.
Certain essential professions are needed for the normal functioning of society. Though it’s a stretch to call them “100% recession-proof,” the impact of economic slowdown on these jobs is close to minimal.
There is a list of jobs which always stay in demand regardless of the economy’s status. They offer strong security even during challenging times like global recession. However, no job is completely safe from economic situations. Some recession-proof jobs are mentioned below:
Starting a career in the medical industry has several advantages. Not only will you follow your love of patient care, but you will also build a professional path that will always be in demand. Healthcare professionals with training and certification enjoy one of the greatest rates of job stability.
Healthcare professions are essential services. Even in the weirdest of times, their demand will not decrease. Diseases and healthcare problems only increase during bad times. Also, there are many roles for just about every education and experience level in the healthcare sector.
- Patient care technician
- Certified nursing assistant
- Laboratory technician
Because there is always a younger generation that needs to be educated and inspired, teaching is and will always be a highly sought-after profession. According to the National Education Association, with a job security rating of 4.4 out of 5, the teaching profession is one of the safest ones. Thanks to the numerous opportunities the education sector provides which ensures that you will never run out of work.
Not every bad situation is COVID when schools are closed. However even during COVID, the education sector was making good revenue. Private educational institutions made a huge sum of money by giving online learning spaces. This shows students continue learning regardless of situations.
Be it a public or private institution, teachers may experience greater job security.
A mental health therapist is an expert who listens to people’s issues. They provide advice on how to handle trying circumstances and strive to feel better. If you enjoy interacting with people and want to assist them in solving their difficulties, then this profession is going to be a rosy garden for you.
Bad times take a toll on mental health. Every year, there is an increasing demand for mental health professionals. The importance of this profession got highlighted during the COVID Crisis when mental health problems were at peak. Mental health professionals are often needed during times of crisis. So the global recession is not harmful to mental health professionals.
Grocery and departmental stores
People may cut their luxury spending during a recession but they can’t compromise much with their basic needs. That often means eating out less and cooking at home more. Grocery and departmental stores come under essential services, so they survive every situation.
Data science is the field of study that deals with the analysis of vast amounts of data. Modern technologies and methods are used by data science experts to uncover previously undiscovered patterns. They gather important data and make business judgments. Data scientists use complex machine learning algorithms to build prediction models.
Data science is a good option while looking for a recession proof career. Reason is its greater aspects of growth and wide varieties of job opportunities.
Data Science is a saviour in recession, WHY and HOW?
Is data science recession proof? Maybe it’s difficult to give a clear answer, but data science certainly shields itself from the economic slowdown. Reason for this is its need at all times. In comparison to data science, other jobs in the recession proof jobs ask for either high investment or long time for preparation.
Data science has emerged as one of the industries with the greatest rate of growth. Over 650% growth since 2012 and a projected 230.80 billion dollar market by 2026. As a result, there are now many more job opportunities in the field and a greater need for qualified personnel. Business analysts, data scientists, and other data specialists are in great demand. In many different industries, big data has a significant impact.
Business analytics and data comprise one-fifth of the top talents, according to studies. Also these are the skills that employers are looking for the most. The constant evolution of data science makes it such an appealing industry to launch a successful career. There are many new skills you’ll learn while making a transition into data science.
Data Science jobs in 2023
Every industry in this digital age needs data professionals. Data has now become the steering wheel of every industry. From the idea stage to execution, data helps in channelling everything. Although an ocean of data is available, it is useless as the salty water of the ocean without data science professionals. Data science professionals help in structuring and targeting the data to bring desired results.
Data science involves analysing and using data to forecast the future and develop plans. Data science offers a wide range of job choices in practically every industry, including banking, finance, insurance, entertainment, telecommunication, and automobiles. Here is a list of data science career jobs:
Data scientists come up with the questions their team should be asking and work out how to use data to provide answers. In the data scientist job, you find patterns and trends in datasets to bring out insights. Additionally, to enhance the quality of the data or product, they employ machine learning techniques.
A data analyst is a person whose duty is to collect and analyse data to address a particular issue. In addition to spending a lot of time with data, other demands are writing reports, creating visualisations like charts and graphs, and delivering information.
Data architects and data engineers collaborate closely with the teams who develop our software and applications. The job of the data architect is to continuously monitor the database and take immediate action to fix any errors. Data architects also create the processes and flows for managing data.
Big data is transforming how we conduct business and putting demand on data engineers who can gather and manage vast amounts of data. Data engineers design systems that collect, manage, and turn raw data into information that data scientists and business analysts may use to evaluate in several contexts. Their ultimate objective is to open up data so that businesses can utilise it to assess and improve their performance.
Landing into a recession proof job can shield from the wild waves of global recession. If not a complete switch in career then at least one can build an extra skill and hustle sidewise.