Talent.com | Insights & Tips for Recruiters

How Are Americans Coping With an Imminent Recession?

Written by Talent.com | 25 janv. 2023 17:17:04

We have heard widespread conversations surrounding the possibility of a recession and lack of job security over the last few months. Although many organizations increased hiring in 2021 and 2022, the job market is now slowing down. Rising inflation rates appear to be a factor for many organizations who are now reducing their overall headcount. With this in mind, we collaborated with market research firm YouGov to survey American workers' thoughts on the current economic landscape and how it could impact their employment. 

Are Americans threatened by an incoming recession? 

According to the report, 42% of workers expect the looming recession to be a potential threat to their job security in the next 12 months. Nearly 2 in 10 workers (19%) see it as an extreme and/or immediate threat.  

How are Americans preparing for an uncertain job market? 

We’re seeing a majority of Americans (67%) turn to upskilling to increase the value they can provide to current and prospective employers. Results show that 37% of workers are focused on diversifying their skillset and 30% are working on improving skills they already possess. 

Would workers shift industries in the face of recession?  

A majority of workers (63%) said they would definitely (24%) or probably (39%) switch their industry of employment if a recession impacted their current industry. When broken down by age, the likelihood of switching industries was higher for 18-34 year olds (69%) and 35-54 year olds (67%) compared to those aged 55+ (46%). 

What sectors are most appealing to American workers? 

Technology was the most popular response despite heavy media coverage surrounding layoffs, with 37% of Americans interested in switching to the sector. Finance and hospitality were the next favored industries of interest, each chosen by 27% of workers, closely followed by manufacturing (25%) and marketing (24%). 

What supplementary income opportunities are workers interested in? 

Fears of financial insecurity and the rising cost of living has also encouraged workers to search for additional income opportunities. Survey results showed that 45% of Americans are likely to take up a side hustle in the face of economic uncertainty. Picking up extra hours at existing jobs (33%) and engaging in freelance opportunities (27%) were other likely alternatives. 

How will Americans utilize additional earned income? 

While many Americans are interested in taking on additional work opportunities, we wanted to discover the reasons behind this inclination. Having more income for everyday expenses was a motivator for 48% of workers, followed by more discretionary income (25%) and more savings (25%). 

Overall, our survey showed that Americans are ultimately concerned about the effect the economy has on their current roles. With that said, many workers are already putting measures into place to minimize any impact this may have, and best position themselves in an uncertain employment market.