![]() If you are only staffing one sector, you could take a larger hit. Diversify your client roster – Make sure the companies and industries you serve are diverse.Top Ways You Can Prepare Your Recruitment Agency for a Recession The people working such jobs may also be ineligible for unemployment since if they’re not actual employees of the firm they work for their state won’t have W2 forms on file reflecting their earnings. 16% of the workforce currently takes part in alternative work, or gigs, and in a recession that is likely to grow. Since then, Congress has allowed those benefits to expire and many states have cut their unemployment programs or made it harder to get or keep them with additional requirements and scrutiny.Īnother unique aspect of the next recession will be the prevalence of alternative work – aka temporary jobs with no benefits, such as driving for Lyft or Uber, or even social media influencing. During the massive layoffs of the Great Recession, Congress increased the duration of unemployment benefits beyond 26 weeks that states provide. One factor that could contribute to a worse recession is that unemployment insurance is harder to get than ever before. A few factors make the next recession a cause for concern, beyond just the regular concerns of job security and financial stability. As previously stated, we are in the midst of the third-longest economic expansion in recent history. ![]() Historically, the longer that goes between recessions, the worse it is for the American public. Geopolitical shocks – such as global pandemics – can also curb growth and throw the economy out of whack. Meanwhile, the Federal Reserve raises interest rates to quell inflation, which essentially puts the brakes on the economy. Recessions happen because labor grows scarce and wages climb, which prompts businesses to ease back on hiring. Preparing for a double dip recession involves the same principles as preparing for a regular recession: Focus on your strengths, make sure your customer mix is diverse, and have a strong internal team, to name a few. How Can Staffing Firms Prepare for A Double Dip Recession? A double dip recession is likely to cause a “false spring” for staffing where contingent workers return to work, followed shortly by more job cuts and losses. The staffing industry is often the first to feel the effects of a recession, and the first to recover as hiring increases. How Does A Double Dip Recession Affect Staffing Firms? Double-dip recessions are often caused by repeating crises, or by government policies that deliberately or inadvertently slow economic growth. This can also be called a W-shaped recovery. Uncertainty sometimes discourages risk-taking and capital spending.Ĭould We Experience A Double Dip Recession?Ī double-dip recession is an economic downturn where a small recession is followed by a short recovery period, then quickly another recession, usually worse than the first. presidential election has left some investors uncertain about what economic policy and potential tax hikes will look like moving forward.
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