When recessions hit , smart job-seekers begin to wonder which industries are strong enough to weather the storm and are recession-proof, and thus these industries are considered recession-proof industries by economists. The goods and services produced by their recession-proof industries have a stable demand and business involving them remain relatively stable, even despite the fall in income that occurs during an economic recession. In theory, these industries will keep on growing and hiring people despite the hard times, making them a safe bet for job applicants. What do these industries all have in common? Unlike real estate, which is heavily driven by individuals’ liquidity, these are all areas that are NOT optional when it comes to having employees and spending money.
1) Security guards and armored car services
The security guard/armored car services industry has grown much in recent years. It’s most likely because shoplifting, vandalism, and other mischief costs businesses even more dearly during recessions than during normal or prosperous times. Most firms are having enough trouble staying afloat without such unnecessary hassles draining even more money from the budget.
2) Turbine & Turbine Generators
One defining trait of recession-proof industries is that they are often not dependent on consumer demand. That is, the industry in question produces something that is essential to business operations or things that have little or no bearing on consumer spending. Turbines and turbine generators are an excellent example of this. The reason seems to be that turbines and engines need to keep working regardless of how the overall economy is doing.
3) Medicinal & biological products
The medicinal and biological products industry thrives for one simple reason: people always get sick, even during recessions. The broader state of the economy has little or no bearing on how often people get sick or require treatments, which likely explains why it has continued to grow through the three most recent recessions we’ve experienced.
4) Medical Equipment
For similar reasons as quoted in above paragraph, the medical equipment industry has thrived growth during the most recent recessions. The market for defibrillators, diabetes testing supplies, and other medical equipment is more or less immune to economic dips and dives for the same reason any medical-related industry is immune: sickness still occurs regardless of economic vitality.
5) School bus transportation
Thanks to our compulsory public education which forces all children to attend schools until at least age 16, the demand for school bus transportation suffers little from economic downturns. In fact, school and employee bus transportation experienced much growth during recessions.
6) Passenger transportation
The economic principle of substitution states that when something becomes expensive, people will substitute other, cheaper things for it. This helps explain why passenger transportation (such as riding the bus) experienced growth during the most recent three recessions. Many people no doubt decided it was cheaper to ride the bus than continue insuring and fueling expensive automobiles.
7) Consumer lending
One of the obvious impacts of recessions is that money is tight and consumer confidence is low. However, consumers still want and need to buy things, which is why many of them turn to banks and financial institutions. Whether in the form of credit cards or outright loans, consumer lending has gone up.
8) Direct health and medical insurance
One possible reason is the increase in stress and anxiety-related illnesses and disorders so commonly associated with recessions, as people fear for their jobs, homes, and livelihoods. Whatever the reason, this is one sector that can be counted on for growth during rough times.
9) Tax preparation services
Nobody likes taxes, but when consumers are feeling the pinch of a recession, they are more vigilant than ever about making sure they aren’t paying more than they have to in taxes. And that is the reason for the growth in this sector during recessions.
10) Colleges and universities
More of the same here. Having a two or four-year college degree instantly makes someone more marketable in the job market, which is why college enrollment tends to spike during recessions.And therefore this industry grows much during the period of recession.
There are many other industries also,which cannot effected by recession and can grow as normal conditions,but we have mentioned only 10 here, for more information keep in touch with EAIB Securities.
We hope you all must be getting benefitted by this short information!
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