A second-quarter decrease in the gross domestic product has sparked recession fears among some corporate executives, economists, and Americans. Inflation is at or near its highest level in decades. Rising prices are hitting consumers hard, and some job seekers are unsure of just how tight the labor market is.
If You’re Concerned About the Economy, Here’s What You Can Do
Get a raise right away if you can.
Even if some experts are predicting a recession, the job market is currently holding up well with an unemployment rate of 3.6%. Pay is still increasing, particularly for individuals who change employment.
Always a good idea, asking for a raise is even more necessary right now since budgets are being eaten away by inflation. A standard increase is 4.5%, but many employees might think about asking for more given the 9.1% inflation rate, especially at businesses that have allocated for merit and one-time bonuses this year.
Do your homework in advance to decide what number you want to achieve, and then plan your speech. Keep in mind that you have negotiating leverage because employers find it expensive to replace employees.
Don’t Forget to Pay Your Bills. Avoid Looking at Your 401(k)
Do not avert your eyes, even if you are concerned about money. Due to stress or financial difficulties, more people are failing to pay their bills and complete other financial tasks, which can harm your credit score and result in increased rates and late payment costs. Automate payments, give bills top priority, and schedule time on your calendar as methods to reduce hassle.
Also Read: How to Benefit from Rising Interest Rates
Looking at your 401k is one thing you can omit (k). When markets are declining, checking balances too frequently can result in some poor choices and, over time, bigger losses.
Sell or Buy without panic
In the event of a prospective downturn, three frequent blunders should be avoided. Do not panic and sell your investments, but do not succumb to the temptation to go on an investment binge because you believe prices have reached an all-time low. Younger investors might choose to purchase discounted equities at this time.
It’s also crucial to be aware that the state of the economy can change, so avoid using your emergency savings to pay off debts or purchase unnecessary items. In case your income changes, try to avoid adding fixed costs—anything that requires ongoing payments, like a new car or home—to your budget.
Inform everyone if you are laid off.
As more businesses announce layoffs and hiring freezes, anxious employees are planning their response in the event that they are fired.
First, inform everyone on social media. Many job seekers have discovered that making their layoff news public immediately results in fresh prospects. Make sure LinkedIn is next on your list of networking and job-seeking platforms, but don’t forget to include Slack.
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Finding the correct communities on Slack and adhering to moderator guidelines are necessary for networking. To avoid being kicked out of the Slacks, make sure you familiarise yourself with them.
Consider That New Job Offer Carefully
Are you confident enough in your current position to withstand a downturn? If not, or if you simply need to leave because you’re unhappy, it’s time to start looking. Millions of vacant positions are still being sought after by businesses.
When it comes to remote work, read the fine print on job postings. Because so many individuals seek flexibility, even as more businesses try to force workers back into offices, they continue to mark job advertisements as “remote” to attract prospects.
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Do your homework on the employer and coworkers, even if the position appears to be a good fit on paper. Although a toxic workplace or poor boss can be unpleasant, there are still things you can do to control the situation.
Don’t quit your job until the very last minute once you land that new position. As recession fears increase, businesses across numerous industries are withdrawing job offers that they had made only a few months before. Be certain that the new employment will materialize, and have a fallback option ready.
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