Depending on whom you ask, we are already in a recession, we can expect one very soon, or we may experience only a small correction in the coming months. As of this writing, a definitive conclusion remains elusive. There are certainly factors that suggest a recession is looming. However, there are also indications that a 2020s recession could differ in some significant ways from the Great Recession of 2008. We’ll examine these indications before discussing how financial professionals are well positioned to withstand troubled economic times and what you’ll need to succeed in this resilient field.  

The Picture Looks Different This Time 

Is the writing on the wall for a recession? If so, the wording is different. Consider these factors: 

The Housing Market 

The 2008 recession—when unemployment in the United States reached 10%—was triggered in large part by the 2007 “housing bubble” burst. While many people snatched up homes with loans they couldn’t afford in the early 2000s, many eventually defaulted on their mortgage payments. According to Experian, the subprime mortgages at the center of the housing bubble that were designed to enable individuals with poor credit to buy a home are now subject to greater government regulations. 

The Job Market 

One significant difference between the 2008 recession and a potential 202X recession is the state of the job market. We entered 2023 with the employment sector still reeling from the “Great Resignation” largely attributed to the COVID-19 pandemic. The federal government has reported that an unprecedented 50 million people voluntarily resigned from their jobs during 2022 alone. 

An NPR report explained the resulting problem: “Some businesses say they’re reluctant to let employees go, even if demand drops, after struggling for much of the last two years to find enough workers.” At present, the job market is still considered to be in good shape, though recent layoffs announced by major companies including Amazon, Google, and Disney suggest a formerly “hot” job market may be cooling off. 

Inflation 

Forbes states it plainly: “Inflation is much worse today than in 2008.” The 2022 consumer price index (CPI) was +8.3%: a significant increase over 2008’s -0.02%. Financial experts do not expect to see inflation level out until at least 2024. 

A Recession-Resistant Career 

Whatever the status of any possible recession may be, it’s always a wise idea to stay prepared, since this phenomenon certainly appears to be cyclical. Over the last three quarters of a century, the United States has not gone much longer than 10 years without experiencing a recession. Considering the last recognized recession ended in 2009, any impending recession is behind schedule.  

One way to prepare for an unknown economic future is to build credentials in a field that doesn’t typically experience the full brunt of a downturn. Many prominent sources, including the ones listed below, have included financial services among their lists of recession-proof industries. Some financial services firms may even thrive during a recession: a time when people are typically more concerned than ever about their finances. 

  • Indeed says that business for big financial services firms may grow during an economic slump. 
  • LinkedIn reports that client-facing roles remain some of the most stable jobs in finance during a recession. 
  • Monster states that some industries continue to need financial services personnel regardless of the financial climate, including healthcare, public accounting, and software development. 
  • Northwestern Mutual, itself a top-rated financial services company, suggests that the need for financial professionals increases during troubled times and accountants and auditors are among the professions that help keep businesses above water. 

Credentials That Can Fortify Your Career 

Having the right professional credentials can make all the difference in sustaining employment when a recession hits, companies reduce staff, and new jobs become scarce. The corresponding skills and knowledge can make you an indispensable part of your team or a leading candidate for a new position in a competitive hiring environment.  

During a downturn, companies and individuals will need experts who can help them manage their money wisely. The University of Texas Permian Basin’s 100% online finance degree programs empower you with financial management expertise that can make you irreplaceable and put you in line for rewarding finance-related positions. Led by acclaimed faculty with real financial industry experience, our AACSB-accredited finance programs include: 

Online Bachelor of Business Administration in Finance 

Build core financial management skills that will serve you well in a variety of careers and prepare for Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP) professional designations with a BBA in finance.

Online Master of Business Administration in Finance   

Already have a bachelor’s degree? Add the prestige of an MBA to your resume. Gain vital operational acumen and leadership savvy in a 33-42 credit program that you can complete in as little as four semesters.

Online Master of Science in Finance 

Focus on honing your financial management competencies in a 30-credit program that is one of very few Texas university programs of its kind with STEM certification. Finish in as little as four semesters.

With one of these degrees, you can compete for a new position or perform to a higher standard in roles such as: 

Financial Manager 
Median annual pay: $131,710 

Financial Analyst 
Median annual pay: $95,570 

Personal Financial Advisor 
Median annual pay: $94,170 

Budget Analyst
Median annual pay: $79,940

Stay Flexible 

The asynchronous online format of our finance degree programs offers you the freedom to complete studies on your own schedule from virtually anywhere in the world. No campus visits are ever required. If you have work and/or personal responsibilities, our programs can enable you to meet your obligations as you earn a widely respected, career-enhancing degree. 

Face an economic storm equipped with a stronger resume! Apply to one of our online finance degree programs today. 

Sources: 
https://www.forbes.com/sites/forbesfinancecouncil/2022/12/05/comparing-2022-to-2008-what-key-economic-drivers-mean-for-investors/?sh=72254de81e7e
https://www.cnn.com/2022/08/05/perspectives/jobs-recession-economy-labor-shortage/index.html
https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/