Almost 4 out of 5 Americans Worry About Losing Their Jobs in a Recession. Here's How to Protect Yours

We don't know for sure whether a recession will come, but there's no harm in being prepared.

There've been no shortage of things to worry about in recent years. Not only did we have to deal with a global health crisis due to COVID-19, we also had to handle all the economic uncertainty that came with it. But while we may have put the worst of the pandemic behind us, sadly it looks like worry and uncertainty are still along for the ride. Research from Insight Global shows that almost 4 out of 5 Americans worry they'll lose their jobs if a recession hits.

Is there a recession coming?

The short answer is maybe. Some economists say there's a severe recession on its way, while others argue it is already here. Still, more believe recession can be avoided. The confusion comes from the fact that key indicators point in different directions.

Economists look at things like unemployment, lay-offs, economic growth, and spending. Unemployment is extremely low, and there were over 500,000 new jobs in July. At the same time, high inflation means consumers don't feel their dollars go very far. Plus, GDP has declined slightly for two consecutive quarters.

But when it comes to your career, the semantics aren't so important. If we do hit a recession, companies will likely start to lay people off, which is why so many people are worried about losing their jobs.

How to recession-proof your career

If there's one thing we can be sure of, it's that change will happen. And the best way to protect yourself against change is to adapt. You can do that by learning new skills, looking for ways to expand your existing role, and preparing yourself financially. Making these three moves now could put you in good stead if things go sour.

1. Roll with the punches

It's not easy to keep smiling when you're worried the sky will fall in. But bear in mind that your colleagues and bosses could be under similar pressure, so try to remain cheerful and supportive of those around you. If you are working remotely, consider putting in more face time. It's much easier to connect with people when you are physically present.

Look for areas where you can take on additional responsibilities or show skills you don't normally use. If your employer does lay people off, it's in your interests to be viewed as indispensable. And if the company needs to reorganize, your flexibility and positive attitude may be rewarded.

2. Be ready for change

Have a plan B. Most things are less scary when you have a plan for how you'll deal with them. Take some time now to consider what you might do if you get laid off. Who will you reach out to? Who can give you good advice? What websites and other ways will you use to find a new job? If you plan to switch to a new role or even a new industry, plot out the steps you need to take.

Dust off your resume. Closely related to having a plan is having a resume that's ready to go. If resume writing isn't your strong suit, you might get help from a career coach or resume professional. Connect with colleagues and former colleagues on sites like LinkedIn and look for other ways to refresh your professional network.

Build an emergency fund. If you have three to six months' worth of living expenses stashed away in an emergency fund, you'll be better positioned to deal with a job loss or any other financial crisis. Indeed, some financial gurus like Suze Orman suggest putting together 12 month's worth of money. If we end up in a prolonged period of economic hardship, it could take time to find a new position. Give yourself that time by stashing as much cash as you can in your emergency savings account.

3. Keep learning new skills

Many employers want people who are eager to learn, so look for relevant training opportunities. You may try to improve skills that are specific to your role, or softer skills such as communication and time management. There are a wealth of free or low-cost courses available online. Upskilling can help you find new opportunities, perform better in your role, and give you an edge if things turn bad.

If you're looking to change direction, research what qualifications you might need and how you might get them. Some careers, such as medicine or therapy, require years of study and training. Others might suit people with different backgrounds, or let you pivot on your existing knowledge. If you need a new qualification, think about how you can get it and how you will support yourself financially while you learn.

Bottom line

The idea of losing your job in a recession can seem overwhelming. However, we're not in a recession yet and the economic storm clouds may still disperse. Ultimately, it makes sense to hope for the best and prepare for the worst. Stash as much cash as you can into your emergency savings and have a plan for how you'll cope if you do get laid off.