What Happens to the Job Market During a Recession?

October 28, 2022
5 min read

There has been much concern and discussion over inflation’s impact on the US economy and whether it can be curbed before triggering an economic recession.

Several factors help economists determine if a recession is looming including consumer spending, industrial production, personal income, job growth, and unemployment rates.

The jury is still out on whether a recession is looming (or already taking place for that matter), but what could happen to the job market and employers’ workforces if a recession does take place?

First let’s examine the early signs and indicators of recession impact.


Economists are currently closely monitoring layoff statistics and finding a very minor uptick, however job growth continues to be robust with several hundred thousand jobs added each month.


Higher unemployment will lead to reduced spending, a stalled housing market, and eventually even more strained supply chains and industrial production due to job losses. And if inflation is not under control before this time, a cyclical problem will be difficult to solve as costs of goods and services will be out of reach for many households to afford if they have one or more unemployed members within the home.


While some employers are hiring at a normal pace, others are implementing hiring freezes or pauses. The more this happens, the more the economy will feel the impact negatively.


Employers should focus on finding ways to operate as efficiently as possible, reducing operating costs wherever feasible. Employers should also evaluate their workforce strategies as a whole. Many organizations are finding efficiency, cost-containment, and in many cases, cost-savings by shuffling their workforce makeup from mostly full time employees to a combination of full time employees, part time employees, independent contractors, labor vendors, and outsourcing service providers.


Using consulting specialists can help increase productivity while decreasing spending. Next Level Benefits provides expert HR consulting services and can help your HR department prepare for and weather any economic storms that come our way. Contact us to learn more.

Previous Post
Next Post
Nothing to see here. Head back to our Blog.
Nothing to see here. Head back to our Blog.

What is Purpose-Driven Work?

What Benefits Do Millennials and Gen Z Care About?

How to Get That HR Project Off the Ground

Exploring the Latest Trends in Workplace Mental Health and Wellbeing

Next Level Knowledge: Top HR Projects 2023

Leadership Trends in 2024: A Glimpse into the Future of Effective Leadership

Making Every Day Giving Tuesday

What Does an Independent HR Consultant Do?

Next Level Knowledge: Top HR Trends for 2024

The Power of Pay Equity: Fostering Fairness and Success in the Workplace

Next Level Knowledge: Human Resource Professionals Day

Creating a Sustainable HR Strategy for 2024

Suicide and HR Risks: Navigating the Complex Landscape

Prioritizing Women's Health in the Workplace

Next Level Knowledge: AI in the Workplace

Understanding Digital Nomad Employees

The Importance of Conducting a Skills Gap Analysis

Next Level Knowledge: Supporting Caregivers in the Workplace

Employers Who Support Employee Self-Care Are Winning

Maximizing Your 2024 HR Budget: Unlocking Value and Strategic Success

Shorter Workweeks: The Benefits for Your Business

Work-Life Integration: Achieving Balance and Thriving Together

Juneteenth as a Recognized Holiday: Companies Leading the Way

Next Level Knowledge: Paid Time Off

How Does DEIB Show Up in the Workplace?

Next Level Knowledge: Mental Health Awareness

A New Framework for Mental Health & Well-Being in the Workplace

Next Level Knowledge: Project Roundup

How Employers Can Support Volunteerism at Work

What's the One Thing Employees Want?

Next Level Knowledge: Pets in the Workplace

Next Level Knowledge: Entrepreneurship

Next Level Knowledge: Paid Holidays

Top HR Trends for 2023

How Employers can Show Generosity on Giving Tuesday (and Beyond!)

HR Consultants Play Many Roles and Make a Big Impact

What Happens to the Job Market During a Recession?

How Inflation Affects the Labor Market

How The Gig Economy Is Impacting Employers

Strong, Transparent Communication is the Only Rational Anecdote to Fear

Exploring Current HR Trends

Making Sense Of The Covid-19 Vaccine Mandates

Next Level Benefits Featured on the Winning Teams Podcast with Jordan Smith

Mind The Innovation Podcast: Transparency in Leadership

Next Level Benefits Featured on The Business of Business Podcast

Lauren Winans joins the Future of Field Service Podcast to Discuss Creating a Compelling Employee Value Proposition

The Confident Retirement Podcast Welcomes Lauren Winans and Next Level Benefits

Insurance Town Welcomes.....Lauren Winans of Next Level Benefits

Lauren Winans and Next Level Benefits Aim to Create More "Best Places to Work"

How the Pandemic Has Expanded the Role of HR

10 Ways to Incorporate Diversity, Equity, Inclusion, and Belonging into Employee Compensation and Benefits

How Employers Can Support Employees with Reproductive Care Services

How to Encourage Employee Productivity

10 Ways to Enhance DEIB in Compensation and Benefits

Boosting Motivation, Productivity, and Employee Morale in the Workplace

Our Partnerships with HR Experts

Digital Health and Wellness Startups: What Does It Really Mean to Sell to the Employer Market?

Get Our Newsletter

If you enjoyed reading this blog post, sign up for our newsletter to receive more valuable insights directly to your inbox. Enter your email address in the field below!

By clicking the Sign Up button you're accepting our Terms of Service.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
“Our dedicated HR expert is one of the best that I have had the pleasure of working with. Her professionalism and depth of experience are exceptional.”

Professional Title

Company Name or Author

Discover the Benefits of HR Consulting

Turn our expert HR advice into action. Set up a quick 15-minute call today.