How to Get Ready for a Recession
Unless something changes, we’re about to enter a recession. (That’s assuming we’re not already in a recession, which economists are debating as we speak.)
As most of us don’t work for the Fed or the executive branch or sit on the board of a major American corporation, there’s very little we can do to stop the economic tide from turning. About all we can do is get ready.
Here’s how to protect your career and your finances in case of recession.
Be Prepared to Job Search
Get your resume ready: Update your job titles, accomplishments, and skills. Be honest — fibs have a way of coming back to bite you later — and be sure to demonstrate how you can make or save money for employers. Quantify your results with dollars, percentages, etc.
Update your LinkedIn profile: If you’re unemployed, use open-to-work and post about your qualifications and what you’re looking for in your next role. Be positive and focused on what you can do in your next role. Make sure your dates and job titles match your resume.
Build your network: The best way to ensure that people are willing to help you find a job is to be there for them when they need you. Connect friends and colleagues with job opportunities and offer assistance when you can. Proofread resumes, set up informational interviews, and so on.
Upskill yourself: Look at the job description for the jobs you’re interested in and consider where your skills gaps are. Are you lacking a certification or skill that might make you a more appealing candidate? If so, look for free or low-cost training that can help close the gap. For example, the U.S. Department of Labor’s CareerOneStop site offers a Find Training tool.
Focus on more stable industries, sectors, or job types: Worried about losing your job to automation, AI, or other industry forces? Consider moving your transferable skills to a more stable environment. For instance, both Alison and Jen have heard of folks leaving private sector jobs to move into local government roles. And healthcare is currently one of the few industries that shows growth almost every month. Tech workers who are dealing with downturns in that sector might consider looking for similar roles with their local hospital system.
If You’re Employed, Try to Stay That Way
Be nice to your boss, team, and clients: Now is not the time to get a reputation for being hard to work with. Make sure you’ll be the last on any layoff lists (and the first to have folks lining up to give you a reference if you do get cut).
Don’t complain about work at work: It’s a stressful time, and most of us probably have one or two things we’d like to get off our chests. Do that after hours, with people you trust (who don’t work with you). Don’t say anything to a coworker that you wouldn’t loudly announce at a meeting or print out and hang over your desk.
Do any job searching on the sly: If you’re currently employed and looking for your next role, be discreet. Look for work on your own time, using your own phone, tablet, or laptop, and don’t discuss your job search at work. Don’t post your resume online or add an open-to-work frame to your LinkedIn profile.
Get Your Finances in Order
Make a budget (or review the one you have). Know your current financial situation so you can make contingency plans.
Build emergency savings. The common recommendation is three to six months of savings, but for most Americans, that’s hard to pull off. Instead, look for ways to contribute regularly to savings, even if it’s only a few dollars a week. Automate this if you can, so that your savings grow without you having to think about it.
Cut expenses. This is a big one, especially if you need to build savings. Review your bank and credit card statements for regular subscriptions you may have forgotten about, and cut anything that you no longer need. Keep in mind that you may be able to downgrade some subscriptions, as well, and choose a cheaper option. Satellite radio, streaming services, and other subscription media often have tiered packages. Downgrade where you can’t cut. Get a library card and use it instead of buying ebooks and magazine subscriptions or paying for streaming rentals.
Use credit cards wisely. Switch to a cash back credit card or one with a zero percent offer (provided that you can pay off your debt during the intro period and take into account any fees).
Use coupons. Download store apps and coupon apps (these Reddit threads are a good place to start).
Cut back on buying what you don’t need. Keep your car for a while longer instead of getting a new one. Switch to store brands. Pause recreational shopping and look for free or cheap activities instead. Cancel your unused gym membership and look for cheaper parks and recreation classes that you’ll actually attend.
Do you think we’re heading into a recession — and if so, how are you preparing? Join our free subscriber chat and share your take.
New & Noteworthy
Here’s How Long It Takes to Get a Job Offer Right Now: New research from Huntr shows that the median time to first offer increased 22% to 68.5 days from Q1 to Q2 2025. Also interesting: LinkedIn still receives the most job saves, but Google Jobs offers better ROI for job seekers, providing triple the callback rate, according to this research.
Why Employers Should Hire Caregivers: One in four Americans provides ongoing care to a family member or other loved one. However, this care comes at a steep price for caregivers, who often find themselves shut out of 9-to-5 jobs in their fields. In a LinkedIn post, Angela Watts, M.Ed., SHRM-CP, CCTC, makes a compelling case for employers to provide more caregiver-friendly jobs — and not just because it’s the right thing to do.
ChatGPT-5 Was a Bust. Now What? The latest iteration of OpenAI’s market-leading chatbot fell short of expectations. Some experts predict the imminent bursting of the AI bubble. But with a third of the value of the S&P 500 dependent on tech stocks, the end of AI dominance would almost certainly lead to tough times for investors.
Our Favorite Tools & Tips
Get Help From Google: Learn about career options, take a course, earn a certificate, write your resume and cover letters, track your applications, find the latest job listings, and practice interviewing with Google's career and job search tools.
Apply Directly on Company Websites: If you have a company you'd like to work for, skip the job boards and check the careers section of the company website for job postings. You can apply directly on the company website and you also may be able to sign up for job alerts to be notified of new listings that match your interests. It’s also a good way to avoid scams.
Grammarly: One of the easiest ways to knock yourself out of contention for a job is to have a typo or grammatical error in your resume or cover letter. Grammarly’s Free Grammar Checker reviews your text for grammatical errors, spelling mistakes, and punctuation issues and suggests edits.
Sponsored by Proficiently
Proficiently uses a combination of a team of career coaches and AI to help you get hired. Proficiently helps with personalized job curation, job matching, resume and cover letter assistance, networking outreach, LinkedIn optimization, interview prep, and more. Most importantly, they aim to ensure their clients feel personally supported throughout their job search.
Note: We may receive a small commission if you sign up using this link.
Great advise!
Appreciate your call to keep your search on the DL. Don’t make it any easier for them to slot you into the layoff group.