Not bad to have an insight of what job sectors are still strong and hiring while US starts to go into recession. Are you working in any of them?
1. Health care
4. Mining/oil and gas extraction
5. Professional and business services (particularly in engineering, computer systems and consulting)
6. Leisure and hospitality
I’m in number 5 servicing mining companies, operators, contractors which is basically the EPC industry.
The recent melt down of global markets will result in lot of retrenchments.
I agree and would like to add on
1. Weight loss (Part of Health)
2. Any thing related to Religion – may be you can become a “Swami” or “Guru”
3. Ladies fashion industry and
4. High end product market
On-line income can also be made recession proof by right kind of mix of multiple income streams.
Totally agree on #1-5, but disagree on Leisure and Hospitality. Online travel websites, like Expedia, Travelocity, etc, are taking a beating right now. People only have so many controllable expenses, and travel is one of them. Additionally, they are getting a double-whammy of sorts because businesses are also cutting back travel.
Have a look at Expedia’s stock
The first 3 occupations quoted I agree with, but the others are very much exposed to the effects of the sluggish economy.
1. Since sharp commodity price falls, exploration has been cut relentlessly.
2. This one is just silly. As business services are the peripheral to value creation in firms, when there is hard economic times, this is the group of people hit extremely hard. For example, large companies will find it easy to trim advertising and consultancy services as as to maintain the balance sheet.
3. Once again this industry gets massacred in a recession as people start having lower levels of discretionary income relative to heightened un-employment and dampened salaries. Lowered levels of tourism to Australia have also had a pronounced effect, but by far the largest factor is a hige fall in demand for “entertainment” because people are so reluctant to pass over this non-essential service.
From what I have seen and read, the most recession proof industries in fact are:
1. Government positions (state/federal).
2. The High Net Worth ultra-rich products. (Interesting phenomenon where the super-rich are one of the few to continue spending.) Ie: demand for super luxury yachts greater than 10million$ is relatively elastic. This shows that it is possible to become *too rich* to feel, or even care about, a recession.
3. Professional services (doctors, lawyers, optometrists, pharmacists, etc) This type of work is seen as essential and so will not have significant falls in demand.
4. Brewers, taverns, distillers and liquor wholesalers or intermediaries all remain profitable since it has been shown by research that in hard economic conditions, the amount of alcohol consumption per capita rises slightly.
5. Accountants who focus on bankruptcy and companies going into involuntary administration, where the accountant earns a fee by seeing over what remains of the organisation and deals with trying to satisfy demanding creditors.
I’m sure there are many more, all it takes is for an organisations products or services to be either essential, or in some cases become more profitable in dire economic times (ie: pubs).
Hey Plutonic, that’s some very good points.
You remind me of a couple of things
– Marketing and saling to the ultra rich is actually quite doable and profitable as I guess most stuffs seems to be cheaper in a downturn (that’s if they haven’t loss their shirts in margin trading or property investments).
– Lots of great beer and wine in oz!
– That’s probably why professionals earn more and take a longer time to study and master…