Recession-proof professions focus on need

BY EMILY C. DOOLEY
Media General News Service
Published: June 10, 2008

Recession-proof businesses — and jobs — do exist.

Many are necessity-based, experts and economists say.

Health-care operations, for instance, tend to be one of those businesses.

“The health-care industry is fairly recession-proof because if you’re sick, you go to the doctor or the hospital regardless of your work situation,“ said Christine Chmura, president and chief economist for Richmond-based Chmura Economics & Analytics.

An aging population also fuels demand in this industry. Careers should stay in demand for years to come with stable prospects for doctors, nurses, pharmacists, physical therapists and physician assistants.

Other industries that offer a perceived better path to employment, such as colleges and universities, also do well.

“Higher education typically sees some increase in enrollment during a recession because some displaced workers or students who can’t find jobs decide to get further education as opposed to continuing to look for work,“ Chmura said.

College enrollment is rising as the number of 18- to 24-year-olds increases. More adults are returning to school to enhance career prospects.

The need for teachers isn’t going away, either. Teachers for any grade level who specialize in high-demand fields such as math, science or bilingual education should have an easier time finding and keeping a job.

Businesses that offer or sell necessity items or services, such as grocery stores or car repairs shops, do fine.

People have to eat. But when it comes to groceries, generic foods may sell faster than gourmet, said Erik D. Craft, associate professor of economics for University of Richmond’s Robins School of Business.

Funeral parlors have a steady stream of business, though services and accompanying accoutrements may not be as grand during a recession or economic downturn.

“It’s not a recession-proof business but it’s a service that’s always going to have to be done,“ said Willie S. Watkins III, owner of the funeral home W.S. Watkins & Sons Inc. in Richmond.

Watkins has seen the same number of clients come through his doors, but the amount people are spending has decreased.

“You can still cut back a little on how nice a funeral you have,“ Watkins said.

Some of the most stable jobs are within the federal government, where firings and layoffs happen at one-quarter the rate in the private sector, according to the Bureau of Labor Statistics.

One reason: Even in hard economic times when big businesses are forced to downsize, the government must carry on.

Contact Emily C. Dooley at (804) 649-6016 or . MarketWatch contributed to this report.