Recession Proof Industries 2023

Recessions are inevitable, as our economy is constantly in flux. We cannot control economic recessions, nor can we prevent them. This economic uncertainty creates stress for all of us, but there are many recession proof industries that entrepreneurs should consider. Surprisingly, some businesses even thrive when a recession hits, providing more financial stability for the business owner and much less anxiety and stress.

This article will describe some recession proof industries that help business owners withstand negative economic conditions and sometimes even outperform their peers. Whether individuals are considering changing their occupations or shifting the focus of their venture, many options exist.

What Is an Economic Recession?

Recessions typically occur because consumers everywhere stop spending. Why would consumers stop spending? Usually, people stop spending money because they are concerned about impending negative economic conditions or because they lost their job.

Technically, a recession occurs when the gross domestic product (GDP) registers a loss for two straight quarters. Recessions usually trigger a decline in spending that spreads across all different industries. This decline is related to the simple yet accurate philosophy that when less money is injected into the economy, everything stalls, including new employment and real income.

Recessions are damaging because they affect many different industries. Sometimes it appears that an economic recession makes all businesses less profitable. However, recession proof industries do exist.

What are some recession proof industries?

Some examples of recession proof industries include cleaning companies, liquor stores, childcare, and baby products. Some industries are not directly tied to the rise and fall of the economy. These recession proof industries can survive and even perform during economic recessions.

Typically, what sets these specific industries apart is that they include products or services that most people need, even when spending is more difficult or prices are high.

For example, even during a difficult recession, people still need to have their cars serviced and still need essentials such as electricity, home repairs, groceries, and pet food. At Nakase Wade, our California business attorneys identified recession proof industries that continue to make a profit even under the constraints of a recession:

The four most recession-proof industries to work in are education, computers and information technology, and healthcare.

• Education
• Computers and information technology
• Healthcare
• Financial operations
• Cleaning companies
• Grocery and liquor stores
• Childcare
• Baby Products
• Pet Services
• Funeral Services
• Thrift Stores
• Delivery Services
• Senior Care
• Self-Care and Beauty
• Repair Services
• Freelance Services

What Are Recession-proof Business Ideas?

Businesses in auto repair, childcare, home improvements, and senior care do well in recession. Whether individuals are dealing with a current recession or sizing up a future economic downturn, here are some ideas for businesses that will not stall when economic conditions go south. Instead, this list will spark new, profitable ideas for budding and seasoned entrepreneurs and business owners.

Accounting Services When a recession hits, many companies use accounting services to help reduce costs. However, smart business owners know that during recessions, many businesses struggle to pay their daily bills and stay on top of all the costs of running a business.

From accountants to financial planners, all different types of businesses need to maintain accurate numbers at all times, and accounting for expenses is even more important during a recession. So opening up a company specializing in financial services could be the best bet when the economy sputters.