When faced with economic uncertainty, many companies must make tough calls to protect their business. As the world tightens its purse strings, decisions must be made about business operations, especially the workforce. Some industries ride out recessions better than others, while some often take more brutal hits. Additionally, certain positions are more vulnerable during cost-cutting periods. This article details 12 jobs likely to bear the brunt of market downturns.
1. Hair Stylist and Beautician
When funds become tight, many people take care of their appearance on their own instead of having their hair cut and styled, their nails painted, their eyebrows tinted, and similar. Those who do still visit the salon often leave more extended periods between appointments. Individuals who work in the beauty services industry are vulnerable to a recession.
2. Wait Staff and Restaurant Chef
With less disposable income, individuals often prepare more meals at home instead of splashing out on restaurant meals. Reduced business generally equals job cuts, leaving some 14 million restaurant workers, such as waiters, waitresses, chefs, and cleaners, at risk.
3. Hotel Staff
Receptionists, cleaners, concierge staff, and others who make their living in hotels may experience job losses during a recession. People generally travel less for fun and leisure when times are tough, reducing the need for a whole staffing team in many hotels. The impact is often more significant on smaller hotels that see relatively few business travelers.
4. Tour Guide
As fewer people spend their hard-earned funds on travel, tour guides may need help finding enough customers to make ends meet. Furthermore, those who take time out for fun might be inclined to holiday closer to home, in an area they already know well, further removing their need for tour guides.
5. Air Steward and Stewardess
Covid has already punched the airline industry in the gut, with a recession set to deal further blows. Airlines often sell fewer tickets because people are more reluctant to spend on travel and leisure. This can make routes less profitable, leading to industry-wide job cuts; pilots, baggage handlers, ticketing agents, and other ground staff will likely also feel these impacts.
6. Shop Assistant
The retail industry has gradually shifted over recent years, with many companies shutting up physical stores in favor of less labor-intensive online sales. A recession could spell further doom for shop workers, such as cashiers, security staff, and shelf stackers.
As cash flow slows, artists often feel the pinch, with fewer people wanting to spend money on non-essential items. Companies commission fewer artists and cut back on large-scale projects, and individuals purchase fewer pieces for their private enjoyment.
Those who work in the field of performing arts often also feel the sting during economic uncertainty, with people less willing to splash out on fun experiences. Theater trips, concert visits, piano recitals, and comedy nights are just a few events that are typically curtailed.
9. Casino Staff
Although some people turn to gambling as a way of trying to boost dwindling finances, occasional gamblers tend to avoid casinos when they’re tightening their belts. Indeed, casino workers are usually among those hit the hardest during a downturn, leaving cashiers, croupiers, dealers, and floor staff out of work.
10. HR Professional
As diverse industries suffer job cuts and see reduced workforces, the need for HR professionals also drops. After all, there’s little need for staff members who train and manage others when those others no longer exist. Although HR work won’t become obsolete, positions will likely drastically reduce.
11. Legal Assistant
When law firms look for ways to save money, legal assistants may be among the first staff members to face the chop. Instead, companies could combine positions and create paralegal-assistant roles or time-saving technology might allow lawyers to take on many assistant duties themselves.
12. Production Line Staff
Robots may replace those who earn a wage on a factory production line if their companies need to cut costs. Almost any job in any industry that can be automated or done by robots is at significant risk.
Andrew Herrig is a finance expert and money nerd and the founder of Wealthy Nickel, where he writes about personal finance, side hustles, and entrepreneurship. As an avid real estate investor and owner of multiple businesses, he has a passion for helping others build wealth and shares his own family’s journey on his blog.
Andrew holds a Masters of Science in Economics from the University of Texas at Dallas and a Bachelors of Science in Electrical Engineering from Texas A&M University. He has worked as a financial analyst and accountant in many aspects of the financial world.
Andrew’s expert financial advice has been featured on CNBC, Entrepreneur, Fox News, GOBankingRates, MSN, and more.