• Online
  Degrees
• Online
  Programs
• Online
  Courses
• Online
  Colleges
• Campus
  Programs
• eLearners
  Advisor
• Articles &
  Resources
• Blogs &
  Forums

The Recession and the Economy

What Is a Recession?

The recession is a topic no one likes to think about.

Most of us are already stretching dollars and cutting costs wherever we can.

Still, with so many headlines announcing a floundering economy — the languid housing market, strains on credit, record oil prices — it's impossible to ignore questions about your own financial security.

But what exactly is a recession? How might these fiscal forecasts affect your career outlook? And what can you do about it?

A recession is generally defined as two consecutive quarters of negative economic growth.

Negative growth can be analyzed in a number of ways, but is most often associated with the country's GDP, or Gross Domestic Product.

In the United States, a recession is officially declared by the National Bureau of Economic Research — the NBER — after several months of significant decline in economic activity, including a visible drop in GDP. A particularly long or devastating recession is termed a depression.

Recessions are normal and happening less often.

Despite the frustration and hardship they cause, recessions are actually regular components within the overall business cycle. In fact, according to NBER statistics on the twentieth century, recessions used to occur every two or three years. The 1981-1982 recession, which lasted for sixteen months, was arguably the worst the US had seen since the worldwide economic collapse of the Great Depression, but since then, recessions have been occurring less frequently.

Rising unemployment hints at impending recession.

Even after centuries of experience, economists can't conclusively predict when and why recessions will occur, but rising unemployment is one measurable indicator of trouble to come.

According to a recent article in The Wall Street Journal, the number of Americans unemployed for at least six months has seen a dramatic increase in the past twelve months, and is likely to escalate even higher. At present, this six month unemployment statistic already eclipses parallel figures from official recession periods.

Education is a smart move in a rough economy.

The wealth of quality jobs available has many Americans scrambling to gain an edge. For a lot of them, that means going back to school.

Even if you've already gone to school or training for your chosen field, education is a smart move during tough economic times. One WSJ report shows that more women are returning to the workforce in order to meet rising food costs and supplement household incomes.

Some of these returning professionals, like nurses or teachers, may need to enroll in refresher courses to reclaim licensure. Similarly, technological advancements have broadened the terrain of many traditional fields. Locksmiths, for example, may need to familiarize themselves with the vast array of security equipment being developed for cars, homes and businesses, in order to keep up with competitors.

In other instances, seasoned job holders are considering completely new career directions. Changing global markets and sociological shifts translate into job opportunities that didn't exist fifteen, ten, or even five years ago.

In its 2008 Best Careers issue, U.S. News & World Report lists a series of "ahead of the curve" occupations, including immigration specialist, wellness coach (think personal trainer for body and mind), patient advocate and green-collar consultant. These specialties will likely be in demand, having fewer trained professionals to meet the growing need.

Fundraising, ghostwriting, and mediation are also good examples of career moves that demonstrate current viability, and won't necessarily require a full, four-year degree.

Be prepared!

So where will you find yourself in the coming years? Being prepared for whatever the market has in store means having a plan, and knowing how to execute it. Map out your skills and your shortcomings, and investigate your options. Whether you need to update your education or start anew, distance learning is one ideal solution in terms of cost and convenience.

Online course work will allow you to accrue skills, certification, or a degree while maintaining your current position. And doing it all on your own schedule keeps you in control, so that even if you can't predict the economy, you can be certain of your own success.

---

Elizabeth Demeo is earning an MFA in Creative Writing. She is a contributing writer at eLearners.com and GradSchools.com.

We welcome all comments directed to: recession [at] elearners [dot] com.