Which industries are most likely to perform well during a recession?

While some industries are very susceptible to economic changes, other sectors tend to perform well during recessions. However, no company or industry is 100\% safe from an economic crisis or recession. Consumer staples and alcoholic beverage industries all performed well during the COVID-19 pandemic.

Who gets hit hardest by recessions and job losses?

Communities of color are also typically hardest hit by recessions and job losses, he said. During the Great Recession, the unemployment rate reached a peak of 10 percent, but the peak for white workers was about 9 percent while the peak for black workers was 16 percent.

Why is the health care sector not much affected by recession?

Assume that you plan your monthly budget during tough times. You will be inclined to cut on travel and restaurant visits. But seldom you will try to cut on doctor visits if someone in your family gets sick. This is the simplest explanation to why health care sector is not much affected by the recession.

What happens to discretionary spending during a recession?

Typically most people cut discretionary items from their budgets in a recession, which leads to downturns in almost every sector of retail—with the exception of discount purveyors, big box stores and anything related to DIY.

What is the impact of the job slowdown on the economy?

And while most job slowdowns create a domino effect, it has been particularly acute as sectors such as restaurants closed in droves, affecting not just owners, cooks and servers, but everyone from marketers to produce suppliers. That could mean that many traditionally resilient industries are hurting for awhile.

What happens to the stock market when the economy crashes?

When a recession or an economic slowdown occurs, markets become volatile leading investors to sell stocks. While some industries are very susceptible to economic changes, other industries perform well regardless of what’s happening with the economy.

What challenges do the most vulnerable small businesses face?

The most vulnerable small businesses face both financial and COVID-related challenges (Exhibit 1). We strive to provide individuals with disabilities equal access to our website. If you would like information about this content we will be happy to work with you.