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Who hires in a recession?

Qvisory reports that nearly one in five young adults are unemployed or looking for work, and Harvard’s Jeff Frankel says the recession crisis is now tied for longest since the depression.

No worries though. Optimism is strangely abundant. “There is a newly forming society of people who are making the best of being laid off,” the Boston Globe reports.

So if you’re being a curmudgeon, stop it. The recession is a great time to advance your career. It’s a myth that there aren’t any jobs. Here are three places to discover your next position:

1) Companies that save consumers money.
“While most big retail chains are closing stores and radically cutting back on new outlets, the dollar chains are planning to open hundreds of stores this year,” reports the New York Times. Dollar stores are out-performing even the Wal-Mart giant.

Not only are these once-shifty chains grabbing up market-share, but they’re now considered hot. Not just for the prices, but because consumers are discovering their service is better.

Consumers opt for value and family time over shopping in a recession, so personal attention and conveniences like an easily-accessible staff, less-crowded aisles and traversable parking is tracking with the consumer’s re-discovered values.

The online coupon distributor Coupons.com is also rapidly expanding for similar reasons. Just look at their jobs page; they have twenty-nine open positions in engineering, finance, HR, sales, marketing, and operations. And my own company Alice.com has hired three additional employees since I began work in January.

Saving money, value and convenience are hot commodities during a recession, and these companies will need your help satisfying the consumer’s appetite.

2) Start-up companies that disrupt markets.
Start-up companies like Alice thrive during a recession not only because we will provide value to the consumer, but also because we will disrupt the traditional retail market.

Other start-ups with disruptive business models are poised to take a strong foot-hold as well, like Hulu. In a recent video interview, CEO Jason Kilar reported that Hulu is ahead of their revenue plan for 2009 and they have ten advertised jobs available.

Indeed, Business Week’s Mike Mandel cites evidence that 80% of the top-ten Fortune 500 companies were started during a recession. Recessions have historically weeded out bad ideas and enlivened entrepreneurship, all of which comes together in a perfect storm for job-seekers, innovators and new thinkers.

3) Public sector jobs that solve problems.
The shift in talent to disruptive markets and new growth industries (like green, tech and health care) will have a lasting effect on the nation and the economy.

Especially since traditional careers like law, journalism and finance are all suffering from an identity crisis drastically altering career paths towards public-sector jobs including positions in non-profits, cities, counties, states and other government agencies.

“New career directions are tethered less to the dream of an immediate six-figure paycheck on Wall Street and more to the demands of a new public agenda to solve the nation’s problems,” New York Times columnist Steve Lohr argues.

And those do-gooder jobs tend to be fairly recession-proof. The top ten cities for job growth in 2009 as reported by Forbes all benefited from plentiful government jobs.

Topping the list for job growth is Madison, Wisconsin, the city I call home. A spokeswoman for the city’s chamber of commerce claimed that Madison is “historically recession proof,” in part because the city is the seat of city, state and county governments, and they all provide jobs.

The tie that binds these three opportunities for job-seekers – smart retailers, disruptive start-ups and the public sector – is the emergence of meaningful work in the face of complex problems.

Hiring Revolution.

What do you think? Have you had trouble finding a job in the recession? What industries have you seen luck and growth in, and which have been more difficult? What companies are poised to hire the next generation of talent? 

By Rebecca Healy

My goal is to help you find meaningful work, enjoy the heck out of it, and earn more money.

27 replies on “Who hires in a recession?”

For me, it’s not been hard to find jobs. However, the hard part is in setting yourself apart. One company I interviewed with said that she got 5,000 resumes for the job. She called me and one other person. Competition is really tough right now, so it’s really important to set yourself apart from the get-go and then interview really well.

@ Rosie – I can’t even imagine getting 5,000 applicants – wow. I wonder if this is still a symptom of people looking in the same places for jobs? Congrats on setting yourself apart so well!

Great post Rebecca. Times are tough right now, very tough, but I am continuously surprised by the optimism of our generation.

I’m in an interesting situation (that I won’t go into full detail here) but the long and short of it is that I’m looking for a job in another state – which compounded with the ongoing recession – makes it feel like after looking for several months with virtually no bites, landing something is a lost cause. But I try to keep my head up – and networking, especially online since I’m not in the area, has become so incredibly important.

It’s tough to remain optimistic – luckily I am in a good position at the moment and I have some security, but through all of this – the entire process – I am learning a ton. I am learning the true power of social networking, a power that I can harness for my own good in the future, and as I look to launch my own marketing/social media consulting firm, I have irreplaceable first-hand experience in my hip pocket.

I’ve spoken with many hiring managers that have been very frank – and I’ve noticed one common theme. Companies are unanimously receiving applications from people who are vastly OVER-qualified for the said position. It puts the company in a tricky situation, as someone who is overqualified is likely to leave at the first sign of something better.

It’s a lot to take in, from both ends of the spectrum. But I hold true to the idea that optimism can and does go a long way. I’ve let the stress get the best of me a few times recently – but I’ve still been able to keep my head up and ‘keep on truckin’ so to speak. I know, in time, everything will fall in it’s rightful place.

One last point – through interviews (both phone and face-to-face) I’ve had the most success with honesty. It sounds cliche’ but it’s important to ‘just be yourself’ – if someone doesn’t like you for who you are, you don’t want to work there anyway.

This is probably one of the best posts I’ve read on your blog ever – well researched, well written and with a point of view. Thanks for taking the time to create a thoughtful post. It’s a rarity in the blogosphere these days.

@ Matt – Thanks for sharing your story. I love that your using social networking to help your job search and it’s interesting hear what the hiring managers are finding from applicants. I definitely subscribe to the idea that you should be honest and yourself as well – great reminder!

@ Chrissy – I really appreciate your comment. These are some of my favorite types of posts that bring information together from a wide variety of sources so it’s great to hear others appreciate it : )

The key to all of this? Need driven businesses. In a recession the wants and should go by the way side. Only the actual need fulfilling models will be successful. Models that flew pre-2008 are no longer remotely useful especially if you are launching a start-up.

(The best part of this article imo, The Boston Globe touting optimism…eeks, I’m hoping they survive.)

I was having a discussion awhile back with a group regarding what skills are the most “recession-proof.” Top of the list was strong sales skills.

My day job is commission-only so I know that as long I’m enhancing the bottom line of my company, my job is safe.

That would be how I would seek out a new job. Find a company and demonstrate how you can make them money. I would even consider doing it for free if that would get me in the door to prove my skills.

It unsettles me when city officials refer to our local economy as recession proof. I hope they knocked on some wood after they said that.

@ Stuart – Great points about needs-driven businesses. They will flourish in the recession and continue to be successful even after the economy gets back on it’s feet. I hope newspapers survive too… check out this article on big-screen e-readers that are supposed to be the saving grace for old media.

@ Anne – Sales skills are definitely important because they can applicable in a wide variety of situations. First and foremost, selling yourself to get the job! Demonstrating value is key, thanks for sharing!

@ Nick – Tell me about it. I knock on wood – or I think this desk is laminate ; ) – all the time… : )

Rebecca, I have to agree with you especially with startups that disrupt markets. At Lijit, (since I began working in September of ’08) we have since hired 6 new employees, even in the midst of the recession. We’re growing and becoming bigger and people are still amazed at how startups elsewhere in Boulder (and beyond) are still hiring.

I agree with you that governments are still hiring…actually I’ve found that lots or companies, organizations, govts and non-profits are hiring.

The problem that I’ve found over the past 6 months is that there are 100’s of new and displaced job seekers scrambling for the same 1-2 positions that are listed for those organizations.

I agree with your points but respectfully disagree with the reasoning.

1. Retail discounters with solid business plans always win regardless of business climate. Some dollar store chains expanded during times of plenty.

2. Start up companies don’t typically have revenue that corresponds with sales (i.e. they get capital from investors instead of consumers). So yeah, start ups are great as long as they’ll be around after they start having to rely on consumers.

3. Government spending isn’t reflected by the economy so that can be a solid choice. Government has always been a choice of security versus opportunity. Most of the new thinking about the importance of government work is political. 95% of the jobs in the government are the same ones that were available 10-20 years ago and they are doing the same things.

@ Grace – I love the energy of start-ups that spreads around the city. People get excited when they’re are start-ups around, I think because it brings renewed ideas and vigor to a place. Thanks for the comment!

@ Monica – Good points to bring up… maybe my next post should be about how to differentiate yourself : )

@ Lance – I don’t think you’ve ever agreed with me, ha. Anyway, we’re tracking on the same point for #1 – SOME dollar stores expanded, but if you read the article I linked to they are expanding like crazy now. Yes, solid business plans will always succeed, but there’s a particular advantage for companies right now who will save consumers money.

As far as #2, I think this is a fair view of most start-ups that travel around the blogosphere. But start-ups with disruptive business models are a particularly engaging group and are the next generation of companies. Indeed, as mentioned in the post, 80% of the top-ten Fortune 500 companies were start-ups at one point, so you can’t put start-ups down all that much.

No disagreement on #3 from me. Some great additions to the points already made, although I will say it’s not just political but the desire to have meaningful and respectful jobs (vs the world of finance which used to be the most popular and sucks now)

So essentially, the logic behind #1 is to work for companies that produce “inferior goods”?

@ Dutchess – Nice! Sounds like a blast.

@ Jeremy – Definitely not. In fact, the New York Times article specifically talks about how Dollar Stores are adding new items and completely revamping their image. I’m sure thousands of mothers would argue that coupons (from coupons.com) aren’t an inferior good, and Alice hasn’t launched yet, but I’m confident it’s a great company with an amazing selection of products. Thanks for the comment!

@ Jason – Thanks! I’ve heard a lot of good things about Seattle too.

Jeremy,

I think in terms of straight economics, you are probably right, the dollar store sells more macaroni and cheese and those types of inferior goods, which may be the fact that their same store sales are up.

http://en.wikipedia.org/wiki/Inferior_good

I think you and Rebecca are both probably right. In periods of a down economy inferior goods see a surge and currently, companies that have previously been sellers or inferior goods are seeing a boom while trying to re-brand themselves.

Coupons however, would be an example of price discrimination due to different people’s sensitivity to price elasticity.

This post could also be titled types of business that thrive in a recession. My mom is really involved in the stock market and every week she tells me The Dollar Store and Walmart stocks are doing great!

I also agree with the comment of being a little weary of startups. Alice is unique because of the value that’s created in what is offered.

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