When inflation skyrockets in a country and the cost of living drastically increases, the term recession is usually thrown into conversations. For those who are unfamiliar with the term or who aren’t quite sure what it means, a recession is a part of the business cycle which happens when the vast majority of the population decreases their spending, thus lowering economic activity. A recession can occur for a variety of reasons such as a housing crisis, inflation at an all-time high, world events like

a pandemic, and many others. With company owners reducing their expenses during a recession, it is always possible for layoffs or a lower hiring rate. This article features advice from a Fanshawe College Career Services Consultant, Maya Genc, as well as tips on how students can prepare for a recession.

Genc emphasized the importance of recession preparation for students at any point of their lives. Being aware of how you can be affected by decreased economic activity can help plan your financial stability during trying times.

“Refresh connections within the professional network and consider not only co-workers but also any connections outside of current situations,” Genc advised.

To go the extra mile and be sure that you are staying at the forefront of employers’ minds, Genc suggested reaching out to past connections through social media or if appropriate to “meet for coffee,” increasing the likelihood of employee candidate choice prior to or during a recession.

While reconnecting with past professional relationships can be helpful to secure employment, it’s equally important that students refresh their skillset as this can lead to an additional stream of revenue and also enhance their resumes.

“I highly recommend retraining and upskilling yourself,” Genc said. “Also updating your resume and using other job-hunting tools ahead of time.”

In preparation for a recession, furthering your knowledge to fulfill a specific skill can help with stabilizing financial situations and in some cases might even open the door to an additional career path or a shift in industries altogether.

“Expanding your skillset is one of the best ways to invest in yourself as a future employee,” Genc said. “Students need to become more hirable because a recession usually hits big organizations.”

Another tip Genc acknowledged was making sure to have emergency savings to minimize crises during unforeseen events. For example, if a recession is being spoken about more frequently, it’s recommended that students cut back on their spending to save towards an emergency fund, in the event of reduced revenue in the future.

“Reduce spending, especially non-essential items and pay off your credit card or any debt that you may have,” Genc said.

Those who don’t have a lot of experience in the workforce or don’t have the skillsets that are in demand for companies are the ones who will struggle the most during a recession. Therefore, taking a look at your current resume and identifying what areas could help enhance what you have to offer companies will increase your chances and make you a more hirable candidate.

It’s extremely important that students are aware of the outcomes of a recession and what it means for them going forward so that they don’t feel blindsided and put in a hard position. Being aware that employers may need to cut back hours to reduce salary expenses is a very real possibility. Similarly, an employer might look to lay off employees who aren’t offering critical services to the company, and this should be something that students expect with a recession.

Students are encouraged to use the career services department at Fanshawe to help identify what skills could make them more hirable and how they can achieve them. Additionally, career services offer many benefits to students to assist in securing employment or co-op positions.

Don’t wait until a recession occurs to be scrambling to secure a form of dependable revenue. Conduct thorough research on ways you can prepare for an event like this to occur so that you don’t run into trouble.