What Does a Recession Mean For The Job Market? Employment
Whether you remember back to the chaotic 70s or grew up in the shadow of the 2008 financial crisis, you will no doubt be familiar with the concept of the recession – a relatively rare area of misfortune in the economic landscape. But if you’ve never done any deep research on the subject it can be difficult to understand what exactly a recession is and what it means for the wider economy.
In this latest knowledge hub article from Building Better Opportunities, we’ll be going over what exactly a recession is. We’ll also be talking about what such a recession means for the job market.
What is a Recession?
Imagine the economy like an ocean or a lake. Preferably, we’d like that body of water to always grow. It has its tides but at the end of every financial period, we’d like to see it bigger than it was the previous financial year. When it shrinks, we have a recession: a situation where the entire economy has shrunk.
But what does this market shrinkage mean? In real terms, it means a lower level of economic activity in one year compared to the previous year. Economic activity can take many different forms – from retail activity to the housing market. For example, we experienced a recession in 2020 because of the mass closing of retail stores.
While a recession can be a large-scale issue that lasts years, it can also be a small-scale event that ends within a few months. The scale of the event and the effect it will have on day-to-day life will invariably change depending on the circumstances which brought the recession on in the first place.
The end of a recession usually comes about because of increased economic activity as a result of increased confidence in the market. In layman’s terms, the recession ends because people believe it ended.
What Are The Effects of Recession on the Jobs Market?
One of the key indications of a recession is a shrinking jobs market. This means that as businesses fail and more people are being put on the job market fewer new jobs are being created.
As a result, there is far more competition for fewer jobs, making it harder to secure a job during this difficult time. This is particularly felt by people who have traditionally worked in the retail space – which is often the largest industry impacted.
Employment Support in Stafford and Staffordshire
It can be very difficult to navigate the job market during a recession. But you’re not alone. There are charities and organisations out there that work tirelessly to put people in gainful employment. Building Better Opportunities are one such charity.
We provide expert welfare support in Staffordshire. Whether you’re looking for full-time or part-time employment, struggling to pay council tax, or need help claiming benefits, we can help you by creating a clear action plan and putting your face to face with the right people.
Get in touch with Building Better Opportunities today for more information about how we can help you.