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Top 50 Recession-Proof Industries (And What Makes Them Recession-Proof) Part 1

Posted on 29. Dec, 2008 by ResumeBear in Featured Articles, Job Hunting Strategies

When recessions hit , smart job-seekers begin to wonder which industries are strong enough to weather the storm and are recession-proof.

In theory, these industries will keep on growing and hiring people despite the hard times, making them a safe bet for job applicants. And sure enough, the data show that there are many such industries to look into! The US Bureau of Labor has compiled statistics on the industries that have grown faster than the available workforce during the 1990, 2001, and 2007 recessions. So we thought it would be helpful to interpret that data, drawing inferences about why those industries are most likely resistant to recessions. Here are the first 25 (see the other 25 in part 2 of this article):

1) Residential trade contractors

Residential trade contractors include everyone from carpenters to renovators to carpet installers. While it is not immediately clear why these professions are resistant to recessions (one might think people would spend less on home repairs in times of economic distress), the data show that this sector grew 4%, 4%, and 7% during the 1990, 2001, and 2007 recessions, respectively.

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, boasting 6%, 12%, and 2% growth during 1990, 2001, and 2007. 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

Boasting 7%, 2%, and 5% growth, 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, the medical equipment industry has thrived to the tune of 7%, 4%, and 6% 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) Pet and pet supply stores

Pet and pet supply stores are more or less impervious to economic downturns, showing 3%, 3%, and 8% growth during the most recent recessions. Much as our pets may love us (and dogs may be described as “man’s best friend”), they are not magnanimous enough to eat less or use less kitty litter because their owners’ wallets are feeling a pinch. For this reason, stores catering to pets still manage to do well in times of economic despair.

6) 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 5%, 4%, and 4% growth during the 1990, 2001, and 2007 recessions.

7) 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 12%, 5%, and 4% 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.

Poultry processing

This industries 2% growth rate in each of the three most recent recessions can be summed up with the maxim “hey, everybody’s gotta eat!” As one of the staples of the American diet, poultry processing plants and companies have managed to hold their ground during times of economic uncertainty. While 2% growth may not be phenomenal, it’s far better than most industries manage during bad times!

9) Motor vehicle towing

It’s not alltogether clear why motor vehicle towing grew 6%, 2%, and 4% during 1990, 2001, and 2007, but there are several plausible hypotheses. One is that people spend less money on vehicle maintenance when cash is tight, leading to more breakdowns and thus the need for towing. Another is that high anxiety and stress levels of the masses lead to more accidents, thereby necessitating more towing services. Whatever the case, this industry has grown robustly during the 3 recent recessions.

10) Water and sewage

Like eating and pet care, sewage use is more or less constant regardless of the current economic state. In fact, there is reason to believe sewage use may actually increase during recessions. When people are laid off, it stands to reason that they are spending more time at home, using their own restrooms and water supplies rather than those of their employers. Perhaps this explains water and sewage’s 4%, 2%, and 8% growth!

11) 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 3%, 8%, and 9% during the three most recent recessions.

12) Financial transaction processing and clearing

For much the same reason, financial transaction processing and clearing experiences growth during recessions as well. Once consumers are approved for their loans and/or credit cards, they need to be processed and cleared, often by the same institutions who did the lending, but sometimes also by financial “middleman” institutions. This sector has boasted recession growth numbers roughly parallel with consumer lending, at 2%, 6%, and 8%.

13) Portfolio management

Recessions do not only affect poor people. Even (and sometimes especially) the well-off begin to get nervous when the economy takes a dive, prompting them to ensure that their investment portfolios are getting the most bang for their buck in the marketplace. This helps explain why portfiolo management services grew 6%, 2%, and 5% during the 1990, 2001, and 2007 recessions. There is simply no tolerance for dead-weight investment during such lean times!

14) Investment advice

Going hand-in-hand with portfolio management is investment advice, a sector that has grown 4%, 11%, and 11% during the same timeframe. Investment banks and stock brokers are sought out for their expertise by investors who want to earn a higher return, and those who can provide such services are richly rewarded with growth in income at a time when other sectors are hurting.

15) Direct health and medical insurance

Medical insurers have grown to the tune of 7%, 2%, and 3% during the most recent economic plunges. 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.

16) Self-storage centers

A common cost-cutting measure taken during recessions is to move to a smaller home or apartment, which will cost less to heat, insure, and live in. However, most of us cannot make such a move without finding somewhere to store our excess belongings during the move. This is where storage centers come in and reap 4%, 11%, and 3% growth in recession economies where most industries are struggling just to survive. It’s the old adage of business: find a need and fill it!

17) Tax preparation services

Nobody likes taxes (regardless of how the economy is doing), but when consumers are feeling the pinch of a recession, they are more vigilant than ever about making sure they aren’t paying one cent more than they have to in taxes. Hence why tax preparation services have grown 40% (!), 8%, and 39% (!!) during the most recent recessions. These are astounding figures, but they underscore how resourceful the American consumer is in times of economic distress.

18) Process and logistics consulting services

When the economy is chugging along prosperously, it is easy for waste and inefficiency to be tolerated in the day-to-day operations of businesses. But when the economic picture darkens, businesses can seldom afford such sloth. For this and other reasons, consultants who claim they can eliminate inefficiencies and cut costs associated with logistics have reaped 3%, 3%, and 4% growth during the 1990, 2001, and 2007 recessions. (This is a key point: any business or person who can help people cut costs is valuable and even more valuable during recessions!)

19) Veterinary services

Remember: our cuddly companions don’t know what the economy is doing, so they can’t eat less – or get hurt less often – when the Dow Jones takes a dive. And naturally, most pet owners aren’t going to let Rover suffer from heartworm just because money is tight. All of this spells relief for veterinary services, who have grown 6%, 4%, and 4% in recent recession years.

20) Security guards and armored car services

The security guard/armored car services industry has grown 3%, 6%, and 3% in recent recesssion years. Why? 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.

21) Elementary and secondary schools

Remember: our compulsory government-run school system is immune from recessions. We are forced via taxation to fund the system and send our children to be taught by it. For this reason, it is hardly surprising that elementary and secondary schools have grown 3%, 6%, and 3% during recession years. Some of this growth no doubt includes private school tuitions as well, because after all, a recesson is no excuse for not educating one’s children!

22) Junior colleges

Recessions serve as a wake-up call to those who lack the skills or credentials to get well-paying jobs. This, in turn, motivates many people who chose not to get an education sooner to get one now. Could this be why junior colleges have grown 8%, 7%, and 7% during the 1990, 2001, and 2007 recessions? It seems as plausible a reason as any.

23) 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. Accordingly, colleges and universities have grown 1%, 7%, and 2% during the three most recent ones. An economist would say this represents people taking steps to build their “human capital.”

24) Educational support services

Since the schools have more money to spend during recessions, they are, in turn, able to spread that money around in providing for their own needs. This is partially why educational support services have some of the most robust recession growth rates of any other industry, clocking in at 10% growth during 1990, 11% growth during 2001, and an astounding 20% growth during 2007. As John F. Kennedy would say, “a rising tide lifts all boats.” When education (or any sector) does well, those sectors connected to it tend to benefit by association.

25) Ambulatory health care services

As we have already seen, medical and health-related industries suffer little (and in fact grow) during recessions. Whether it be due to stress-related problems caused by the recession or just the fact that people get sick and injured all the time regardless, ambulatory health care services have grown 6%, 4%, and 4% during the three most recent recessions. Kennedy’s saying clearly applies to the medical and health fields as well!

Stay tuned for part two of this article which names the other 25 industries that grow in spite of recessions!

Related posts:

1. Top 50 Recession-Proof Industries (And What Makes Them Recession-Proof) Part 2
2. How to Market Yourself to Employers in a Recession
3. Most Workers Say Their Companies Are Taking Right Steps to Weather Recession
4. Major Industries Job Trends January 2009
5. Accountants Say Recession Has Changed Their Job Responsibilities

Tags: career planning, Job Search, Online Resume, recession proof, resume, resume tracking, resumebear