Changing jobs in a slowing economic climate - do you stay or do you go?
2022 was a booming year for Australian recruitment with record-low unemployment rates and what was dubbed a ‘candidate’s market’. But will this stay the case in 2023?
Unfortunately not, as early predictions indicate, with unemployment rising to a higher-than-expected 3.7% in January. Elsewhere, experts report that the economy remains resilient but is predicted to slow down towards the end of this year.
What is a slowing economic climate?
Firstly, it’s important to highlight that an economic slowdown is not the same as a recession. The standard definition of a recession is a significant downturn in economic activity represented by a fall in GDP over two successive quarters.
An economic slowdown, however, is a natural state which can happen in any economy strong or weak after a peak in activity. Generally, a slowdown is indicated by a period of reduced economic growth which can ultimately lead to reduced employment and a slowing in manufacturing and production.
What does a slowing economy mean for jobs?
Generally speaking, a slowing economy is not good news for job seekers. On a global level, the International Labor Organisation (ILO) has predicted in a new report that: ‘The current global economic slowdown is likely to force more workers to accept lower quality, poorly paid jobs which lack job security and social protection, so accentuating inequalities exacerbated by the COVID-19’.
That being said, economists in Australia are not so pessimistic. While unemployment did rise to higher rates than expected at the beginning of 2023, experts were quick to point out that January is a time of transition for seasonal workers down under and many respondents were unemployed at the time of the survey but expecting to enter new jobs imminently.
Furthermore, although unemployment in Australia can be expected to rise a little more over the course of the year, we must remember, it is still near record-low numbers.
Should you change jobs in a slowing economic climate?
When it comes to weighing up the pros and cons of changing roles, how far should you consider the economy? While it’s true that if you have a stable and comfortable job, the depth of a recession is probably not a good time to jump ships, staying put isn’t necessarily the right thing to do.
The reasons that most people look to change jobs usually have less to do with global markets and more to do with personal satisfaction or career goals. If you are unhappy or unfulfilled in your current job, you definitely should rule out a change!
Pros of changing jobs in 2023
- A new job = new opportunities for growth
Regardless of whatever the outside world is doing, if you’re feeling stagnant and in need of a new challenge, you should consider looking for a position elsewhere.
Starting with a new organisation or taking on a new role is always an opportunity to push the boundaries of your comfort zone and learn new skills.
- Enter a more stable industry
If the economic slowdown does head into a full recession, some industries will be more affected than others. If you work for a commission, or in a risky, early-stage startup, you might feel that your position would be more stable in another industry.
Industries that tend to do well in a slower economy include utilities, healthcare, government, and shipping and goods transportation.
- Increase your salary
While job-hopping used to be looked upon unfavorably by recruiters, things have changed in recent years. It’s been reported that workers are switching jobs at a rate of 4.1%, a significant increase since the 2.3% rate during the Great Recession.
And switching jobs is often the best way to gain a pay rise, slowing economy or otherwise! According to the Pew Research Center, 60% of workers who switched jobs between April 2021 and March 2022 experienced increased earnings at an average of 9.7%.
If you’re looking for that pay rise - don’t be scared to look outside of your existing company.
Cons of changing jobs in a slowing economic climate
- It can be harder to find a good role
In a slowing economic climate, companies are doing what they can to conserve money and hiring freezes are one of the first actions they may take. This means that there are fewer vacant positions on the job market and greater competition for open roles.
As the economy begins to slow down, finding the role you want can become harder and harder.
- There is a greater risk involved
Before moving to a new role in a slowing economy, it’s wise to consider how your new company might be impacted by a recession.
Many organisations operate by a ‘last in, first out’ style of thinking when it comes to redundancies to be careful about joining a company that looks a little unstable.
- Consider the long-term
Slowing economy or not, it’s important to have your long-term career goals in mind when switching jobs. Think about what your ultimate goal is and whether a new position is going to help you get closer to achieving it.
A period of economic uncertainty might even provide an opportunity for you to step up and show your value to your existing company during a period of stress, rather than looking elsewhere for growth opportunities.
Ready to take the plunge?
Ultimately, if your current role is not meeting your career goals, fulfilling your needs or challenging you sufficiently, it’s time for a change regardless of the economy.
Working with a recruitment specialist such as Conquest helps take some of the stress and risk out of job-seeking. We have years of experience helping candidates find the roles that suit their needs and an extensive network of business recruiters.
If you’re ready to take the plunge and switch jobs or careers in 2023, reach out to a member of our team today!
