A Recession is Coming But Skilled Workers Will Prevail Through It All
Layoffs are starting to sweep through big companies like Tesla, Netflix, and Peloton with no end in sight.
Although in 2020 many companies saw tremendous growth, in May of this year big announcements were made in preparation for the inevitable recession due for this Fall. The pandemic allowed many organizations to staff up since work from home became a societal norm to keep these businesses running. From the start of the remote-work era which started over two-years ago, there are signs that this convenience will soon backfire by creating an extremely difficult environment for domestic white collar workers to hold on to their current positions. A 2021 Fortune-Adobe Survey found that “ 64% of CIOs believe their organization will consider applicants from anywhere in the world after the remote work boom” which makes the domestic American worker seem more and more unattractive to other offshore candidates that usually offer more for far less equity.
But this isn’t just a typical roundup of tech layoffs — after nearly 16,000 tech workers laid off in May, June is off to follow in it’s lead. So what are the top reasons these companies are letting to many employees go? To put it simply — uncertain times and inevitable economic recession looming ahead. With many recent graduates entering a workforce full of uncertainty and lack of positions, many are looking at other avenues to start their professional careers to survive.
As people prepare for the worst, skilled workers are seeing an increase not only in job availability but in job security. With tech jobs being in high demand for the past decade, we’ve come to a point that soon enough they will become highly automated. According to some studies, “about one fourth of the jobs are at risk of being automated across the globe” which has created a higher demand for blue collar careers.
So what are some jobs, skills, or professions that will survive not only through the upcoming recession but in a automated job market?
Jobs that involve high levels of social interaction, niche skills, strategic interpretation, and hands-on skills are bound to see low levels of automation in the following decades. Some examples include Medical Professionals, IT & HR Professionals, and Construction Laborers. Although the inception of automation in these industries might have started, we’ve only seen these processes as an aid instead of a full-blown replacement.
It has allowed individuals in these fields to work more efficiently which is an added bonus for large corporations and businesses to invest their time and money into these technologies and careers. Strategy and critical thinking has never been able to be automated, so looking for jobs that require a human “touch” adds much value to your job security. Even in a world that moves towards digitization, “the ability to understand the context and complexities before offering solutions remains irreplaceable.”
Mike Williamson who used to be a heavy-equipment mechanic for Caterpillar went through the 2008 recession where he experienced a pay cut which led him to seek a new career as an Electrician soon after. He credits his financial survival on being able to learn a new, highly technical skill that helped him move on to a highly protected job market. Some advice he gives is that if “there’s an opportunity for you to, go back to school and get better skills.”
Another example is 26-year-old Ebony Williams who has been in customer support in Houston while also enrolling in a IT service management training program. She advices to stick to jobs that require a certain level of specialization, hoping that her new learned skills will make her more valuable and less susceptible to being laid off in the future. “My biggest concern is trying to secure a higher-paying job and making sure that it is as recession-proof as possible.” Some recruiters have chimed in saying that even with the continued cooling off in the job market, candidates still hold a lot of leverage when it comes to pay and flexible hours. It is key to ask questions during the interview process when it comes to security and pay. Moving forward, companies will want to hire those that are open to flexible hours which can be used as a bonus for those currently seeking employment.
The reality of it all is simple, and it’s the fact that even in the darkest economic times throughout history, skilled careers have always prevailed due to continuous demand. There is never complete job security, even with skilled jobs — but you can at the very least increase the possibility of maintaining a more secure position by investing in programs and degrees that will need the uniqueness of human interaction and skill.
OneDegree Careers is a platform created to help career seekers explore and choose a high-paying skilled career that doesn’t require college debt. Sign up today for free career mentoring.
Work Cited:
https://nypost.com/2022/05/31/tech-layoffs-companies-axe-workers-at-highest-rate-since-2020/