Recession Proof Your Life
Experts may argue whether the country is experiencing a recession,
but the public is taking no chances. Consumers have been so adept at
keeping cash and credit cards in their wallets since last fall,
economists believe the nation might see the first drop in personal
consumption since 1991. Any slowdown could have long-term implications
for African Americans, according to the Center for Economic and Policy
Research. In a mild to moderate recession, African-American
unemployment rates could rise to 9.3 percent this year, compared to 8.3
percent in 2007. If the recession is severe, that could increase to
10.1 percent.
but the public is taking no chances. Consumers have been so adept at
keeping cash and credit cards in their wallets since last fall,
economists believe the nation might see the first drop in personal
consumption since 1991. Any slowdown could have long-term implications
for African Americans, according to the Center for Economic and Policy
Research. In a mild to moderate recession, African-American
unemployment rates could rise to 9.3 percent this year, compared to 8.3
percent in 2007. If the recession is severe, that could increase to
10.1 percent.
That’s why it pays to come up with a strategy for surviving the
down time, says Susan Ascher, CEO of the Ascher Group, a human
resources contract staffing firm for professionals. Even in a tight
economy, she points out, some professions will fare better than others.
“There are certain pockets that are going to thrive,” she says. “If
you’re in the banking industry, that’s scary. If you’re a home-health
aide, that’s not quite as scary.”
down time, says Susan Ascher, CEO of the Ascher Group, a human
resources contract staffing firm for professionals. Even in a tight
economy, she points out, some professions will fare better than others.
“There are certain pockets that are going to thrive,” she says. “If
you’re in the banking industry, that’s scary. If you’re a home-health
aide, that’s not quite as scary.”
The same goes for geographic areas. Ascher believes the Midwest,
where automotive and manufacturing industries rule, will see harder
times than the Northwest, where aerospace is king. No matter where you
are, or what you do, now is not the time=2
0to flinch. “People, like corporations, need to stare change in the
face,” she says. So use a combination of tactics to weather the times
ahead.
where automotive and manufacturing industries rule, will see harder
times than the Northwest, where aerospace is king. No matter where you
are, or what you do, now is not the time=2
0to flinch. “People, like corporations, need to stare change in the
face,” she says. So use a combination of tactics to weather the times
ahead.
Tighten your belt: If layoffs are looming, use the money you’re
still making to pay down bills. Cut expenses and put the extra aside.
“Live below your means,” Ascher says. “It doesn’t mean you can’t take
your kids to Burger King, but it does mean you have to save for a rainy
day.”
still making to pay down bills. Cut expenses and put the extra aside.
“Live below your means,” Ascher says. “It doesn’t mean you can’t take
your kids to Burger King, but it does mean you have to save for a rainy
day.”
Get in good with your boss: Executive recruiter and author
Stephen Viscusi says most hiring and firing decision are subjective, so
your relationship with your boss can help–or hurt. ”Bosses like to
keep people who they really like to work with,” Viscusi says. “Nothing
is worse than the person who is a high-maintenance employee. The one
who is difficult to get along with, that’s who’s gonna go.”
Stephen Viscusi says most hiring and firing decision are subjective, so
your relationship with your boss can help–or hurt. ”Bosses like to
keep people who they really like to work with,” Viscusi says. “Nothing
is worse than the person who is a high-maintenance employee. The one
who is difficult to get along with, that’s who’s gonna go.”
Work hard, and work long: Lois Cooper, vice president of
employee relations and diversity at the human relations firm ADECCO,
urges workers to look around for a way to make themselves invaluable.
“Let’s say you’re in a call center. If you’re the one who provides the
best service, that will make you stand out from the rest,” she says.
employee relations and diversity at the human relations firm ADECCO,
urges workers to look around for a way to make themselves invaluable.
“Let’s say you’re in a call center. If you’re the one who provides the
best service, that will make you stand out from the rest,” she says.
And if you aren’t actually busy, at least look like you are. “Be visible, be early
, stay late,” Viscusi says. “This is not the time to plan your wedding at work.”
, stay late,” Viscusi says. “This is not the time to plan your wedding at work.”
While you still have a job, train for work in a burgeoning
profession: Some fields are going to grow; consider switching. Health
care is a growth industry with positions that only require six months
to a year’s worth of training, Cooper says. If money is an issue, check
with the local branch of the National Urban League or with local school
districts. They often offer free or inexpensive classes that can help
you gain new skills.
profession: Some fields are going to grow; consider switching. Health
care is a growth industry with positions that only require six months
to a year’s worth of training, Cooper says. If money is an issue, check
with the local branch of the National Urban League or with local school
districts. They often offer free or inexpensive classes that can help
you gain new skills.
If you’re laid off, file for unemployment later rather than
sooner: Think of unemployment as a cushion, Ascher says. “Take a
menial job. Get a temp job. Then fall back on unemployment.”
sooner: Think of unemployment as a cushion, Ascher says. “Take a
menial job. Get a temp job. Then fall back on unemployment.”
But the best option is to keep your job. That might mean taking
drastic measures. Viscusi knows of executives who kept their jobs by
offering to take a salary cut. It’s a strategy he advises high-paid
managers older than 40 consider if they’re on the layoff list. “Say, ‘I
like the company. I like the job. Why not let me do the same job for
less money?’ At least you’re able to pay your mortgage.”
drastic measures. Viscusi knows of executives who kept their jobs by
offering to take a salary cut. It’s a strategy he advises high-paid
managers older than 40 consider if they’re on the layoff list. “Say, ‘I
like the company. I like the job. Why not let me do the same job for
less money?’ At least you’re able to pay your mortgage.”
–Afi-Odelia E. Scruggs is a Cleveland freelancer who frequently covers money issues.
