According to a survey by CNBC conducted last July, 6 out of 10 Americans believe that a recession will happen next year.
“Recession-proof” is a term used for industries or organizations resistant to the negative impacts of economic downturns. For several reasons, some companies and organizations even grow during a recession, and one way to identify these businesses is by looking for those with negative beta values. This simply means that their assets move in the opposite direction of the economic market. One example is the healthcare industry since consumers always need medical care despite their economic condition.
One more example is how Amazon grew during the COVID-19 pandemic. At first, Amazon had trouble keeping up with the sudden increase in demand, but as they adapted, they were able to accommodate their consumers by hiring more delivery personnel and scaling their warehouses.
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One of the most common definitions of recession is two succeeding quarters of GDP decline. According to the National Bureau of Economic Research, recession can be defined as “a significant decline in economic activity spread across the economy, lasting more than a few months.” In some instances, a recession can be measured even before the quarterly GDP report is released by some significant economic benchmark like a decline in income, a drop in employment rates, manufacturing data, and more.
There are several reasons why a recession happens. Some are correlated with unexpected changes in prices that lead to a sudden decline in expenditure by both private and public sectors.
Financial market problems can also cause recessions. In the 2008 economic downturn, the abrupt increase in prices and rapid expansion of credit was characterized by debt inflation. As organizations and households move on from overextension and struggle to confront their debt responsibilities, their investments and expenditures decline, and once they do, these recessions become more expensive compared to others.
A recession can also happen because of a sequence of events in the economy, like a supply chain interruption, a financial crisis, or an international affair. An inflationary phase can also cause a recession. Central banks scale interest rates to steady the economy during inflation, and with these higher interest rates, the possibility of recession also increases.
When gross domestic product reports negative growth, private companies usually hold back with their operation and attempt to limit their vulnerabilities to systematic risks. With the level of spending and investments declining, an expected price reduction might occur to increase demand. GDP declines and unemployment rates rise because companies will try to reduce costs by laying off employees.
There is a direct relationship between finances and factors like interest rates and supply chain disruptions. The correlation is not straightforward as financial policy contrivance, like interest rate, also involves skirting around replications to banks on slowdowns.
Training yourself to learn a new skill or improving the ones you already have, is an excellent strategy to increase your value in your current field and make your resume more pleasant and enticing for future employers. Becoming more proficient with your current expertise will help you stay ready for new advancement in your chosen field.
The good news is training is within your arm's reach. You can immerse yourself in AppSecEngineer’s courses that are sure to keep you on the bleeding edge of the application security industry.
Having the right people on your side can be a game changer whenever you are facing an obstacle in your career. Why do you think many successful individuals have mentors or coaches? Having a support system, whether it’s career advice or emotional and mental support, makes all the difference.
An economic recession is a crucial moment to keep yourself in the know about industry trends and innovation. Being a diligent industry front-runner is important to keep your growth uninterrupted and to have strong job security. Determine the areas in your industry that are struggling and flourishing, and characterize yourself within the overall view.
While it’s important to know your reality, landing a promotion or getting a pay increase is not that impossible. Even getting hired for your dream position! Companies that are forward-thinking and warrant their teams to develop usually make it through recession stronger than ever. Embrace optimism and embody positivity within your conversation and career outlook. When you are voyaging through rough seas, a positive and shrewd brain is better than a wary and overly cautious employee.
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