A recession is coming – what now?

This year there have been many indications that there is a recession looming. Whether it has already started, or is fast approaching is up for debate, but nonetheless, we all need to be mindful of the approach we should take in terms of our role as a recruiter and in terms of our own career development in the industry over the next year or so.

One of the key indicators that a recession is on the way is that earlier this year, the Bank of England announced that it expected GDP to fall by 1% in Q4 2022 and a further 0.25% throughout 2023. This, in addition to inflation reaching between 7-10%, would typically mean that the labour market will see increased unemployment, reduced labour churn, and a reduced wage growth. It can be fair to say that that UK companies should expect it to be more difficult to cope with a slump in sales and growth due to the rise in interest rates over the next year, with further research suggesting the economy is expected to be in a recession until summer 2023.

There are many trends that have taken place recently that affect the economy such as the need to grow the UK labour post Brexit and consequences of a post covid workforce, such hybrid working. On top of this, the government was planning on transforming the UK into a high-wage, high skill economy and it is yet to be decided what significant changes will be carried out and how this will affect businesses and the job market.

So, what should you do – if anything? Is it a good time to change jobs? If you’re worried about not receiving the development or salary increase in your current role, there are things that you can do to put you in the best position possible to keep all your options open when it comes to deciding on whether you want to look for a new role or not. 

Review your current salary, skills, and responsibilities
The first place to start is to do you research around your current role. Unless your current employer has a good progression plan in place, you won’t know what skills or experience other companies expect if you want to develop in your role and beyond. When you know how your current roles compares to similar roles in other organisations from job adverts, you’ll gain a good understanding of any gaps in your own skill set and which areas you are strong in. This will also be a good exercise for you to see how your salary compares to other roles.

Update your LinkedIn profile
Once you’ve done your research, you can then update your LinkedIn profile so you can make sure you’re including any skills and responsibilities on your profile to be in line with the direction you want your career to be going in. LinkedIn is the most popular networking platform for recruiters and is very much the first port of call for you to be headhunted. As a recruiter we understand that it is especially important that you don’t want your current employer to discover you’re looking for a new role. Which is why LinkedIn is a great place for you to attract recruiters who have relevant job opportunities, instead of you signing up to multiple job boards and worry that you’re going to get caught out!

Our main suggestions to ensure your LinkedIn personal profile look great and stand out include:

  • A recent, appropriate photo
  • Update your Headline and About section
  • Update your current role and responsibilities
  • Review your Featured section
  • Add any relevant skills
  • Ask for recommendations (and give them!)
  • Grow your connections

Chat through your options with a recruiter
You will then want to have a chat through your options with a recruiter as they will have excellent insight into what the market is like now and whether you’ll be able to find progression in your career right now or when will be the best time to do so. A recruiter’s advice will be invaluable when negotiating the best package for you, so when discussing your expectations, especially salary wise, be realistic about knowing your worth but also don’t overshoot as you don’t want to put yourself at risk of redundancy when your employer considers what your return on investment is.

Look after yourself
And finally, perhaps one of the most important things to prioritise whilst working through a recession, is to look after yourself, mentally and physically. At the end of the day, your job is your job, and nothing should come before your health. So, make sure you’re spending your personal time well, whether that means spending more time with family and friends, going out for more walks at lunchtime while it’s light outside, eating well, and prioritising your sleep. There are lots of ways you can manage stress, worry, and stay positive when working through a recession, so don’t bury your head in the sand and please do reach out to someone if you need support.

If you’d like an informal chat with one of our recruitment specialists, get to know the team and reach out on LinkedIn HERE or use our contact form HERE.