Top 50 Recession-Proof Industries (And What Makes Them Recession-Proof) Part 1
December 29, 2008 
73 Comments
When recessions hit , smart job-seekers begin to wonder which industries are strong enough to weather the storm and are recession-proof.
In theory, these industries will keep on growing and hiring people despite the hard times, making them a safe bet for job applicants. And sure enough, the data show that there are many such industries to look into! The US Bureau of Labor has compiled statistics on the industries that have grown faster than the available workforce during the 1990, 2001, and 2007 recessions. So we thought it would be helpful to interpret that data, drawing inferences about why those industries are most likely resistant to recessions. Here are the first 25 (see the other 25 in part 2 of this article):
1) Residential trade contractors
Residential trade contractors include everyone from carpenters to renovators to carpet installers. While it is not immediately clear why these professions are resistant to recessions (one might think people would spend less on home repairs in times of economic distress), the data show that this sector grew 4%, 4%, and 7% during the 1990, 2001, and 2007 recessions, respectively.
2) Turbine & Turbine Generators
One defining trait of recession-proof industries is that they are often not dependent on consumer demand. That is, the industry in question produces something that is essential to business operations or things that have little or no bearing on consumer spending. Turbines and turbine generators are an excellent example of this, boasting 6%, 12%, and 2% growth during 1990, 2001, and 2007. The reason seems to be that turbines and engines need to keep working regardless of how the overall economy is doing.
3) Medicinal & biological products
Boasting 7%, 2%, and 5% growth, the medicinal and biological products industry thrives for one simple reason: people always get sick, even during recessions. The broader state of the economy has little or no bearing on how often people get sick or require treatments, which likely explains why it has continued to grow through the three most recent recessions we’ve experienced.
4) Medical equipment
For similar reasons, the medical equipment industry has thrived to the tune of 7%, 4%, and 6% growth during the most recent recessions. The market for defibrillators, diabetes testing supplies, and other medical equipment is more or less immune to economic dips and dives for the same reason any medical-related industry is immune: sickness still occurs regardless of economic vitality.
5) Pet and pet supply stores
Pet and pet supply stores are more or less impervious to economic downturns, showing 3%, 3%, and 8% growth during the most recent recessions. Much as our pets may love us (and dogs may be described as “man’s best friend”), they are not magnanimous enough to eat less or use less kitty litter because their owners’ wallets are feeling a pinch. For this reason, stores catering to pets still manage to do well in times of economic despair.
6) School bus transportation
Thanks to our compulsory public education which forces all children to attend schools until at least age 16, the demand for school bus transportation suffers little from economic downturns. In fact, school and employee bus transportation experienced 5%, 4%, and 4% growth during the 1990, 2001, and 2007 recessions.
7) Passenger transportation
The economic principle of substitution states that when something becomes expensive, people will substitute other, cheaper things for it. This helps explain why passenger transportation (such as riding the bus) experienced 12%, 5%, and 4% growth during the most recent three recessions. Many people no doubt decided it was cheaper to ride the bus than continue insuring and fueling expensive automobiles.
Poultry processing
This industries 2% growth rate in each of the three most recent recessions can be summed up with the maxim “hey, everybody’s gotta eat!” As one of the staples of the American diet, poultry processing plants and companies have managed to hold their ground during times of economic uncertainty. While 2% growth may not be phenomenal, it’s far better than most industries manage during bad times!
9) Motor vehicle towing
It’s not alltogether clear why motor vehicle towing grew 6%, 2%, and 4% during 1990, 2001, and 2007, but there are several plausible hypotheses. One is that people spend less money on vehicle maintenance when cash is tight, leading to more breakdowns and thus the need for towing. Another is that high anxiety and stress levels of the masses lead to more accidents, thereby necessitating more towing services. Whatever the case, this industry has grown robustly during the 3 recent recessions.
10) Water and sewage
Like eating and pet care, sewage use is more or less constant regardless of the current economic state. In fact, there is reason to believe sewage use may actually increase during recessions. When people are laid off, it stands to reason that they are spending more time at home, using their own restrooms and water supplies rather than those of their employers. Perhaps this explains water and sewage’s 4%, 2%, and 8% growth!
11) Consumer lending
One of the obvious impacts of recessions is that money is tight and consumer confidence is low. However, consumers still want and need to buy things, which is why many of them turn to banks and financial institutions. Whether in the form of credit cards or outright loans, consumer lending has gone up 3%, 8%, and 9% during the three most recent recessions.
12) Financial transaction processing and clearing
For much the same reason, financial transaction processing and clearing experiences growth during recessions as well. Once consumers are approved for their loans and/or credit cards, they need to be processed and cleared, often by the same institutions who did the lending, but sometimes also by financial “middleman” institutions. This sector has boasted recession growth numbers roughly parallel with consumer lending, at 2%, 6%, and 8%.
13) Portfolio management
Recessions do not only affect poor people. Even (and sometimes especially) the well-off begin to get nervous when the economy takes a dive, prompting them to ensure that their investment portfolios are getting the most bang for their buck in the marketplace. This helps explain why portfiolo management services grew 6%, 2%, and 5% during the 1990, 2001, and 2007 recessions. There is simply no tolerance for dead-weight investment during such lean times!
14) Investment advice
Going hand-in-hand with portfolio management is investment advice, a sector that has grown 4%, 11%, and 11% during the same timeframe. Investment banks and stock brokers are sought out for their expertise by investors who want to earn a higher return, and those who can provide such services are richly rewarded with growth in income at a time when other sectors are hurting.
15) Direct health and medical insurance
Medical insurers have grown to the tune of 7%, 2%, and 3% during the most recent economic plunges. One possible reason is the increase in stress and anxiety-related illnesses and disorders so commonly associated with recessions, as people fear for their jobs, homes, and livelihoods. Whatever the reason, this is one sector that can be counted on for growth during rough times.
16) Self-storage centers
A common cost-cutting measure taken during recessions is to move to a smaller home or apartment, which will cost less to heat, insure, and live in. However, most of us cannot make such a move without finding somewhere to store our excess belongings during the move. This is where storage centers come in and reap 4%, 11%, and 3% growth in recession economies where most industries are struggling just to survive. It’s the old adage of business: find a need and fill it!
17) Tax preparation services
Nobody likes taxes (regardless of how the economy is doing), but when consumers are feeling the pinch of a recession, they are more vigilant than ever about making sure they aren’t paying one cent more than they have to in taxes. Hence why tax preparation services have grown 40% (!), 8%, and 39% (!!) during the most recent recessions. These are astounding figures, but they underscore how resourceful the American consumer is in times of economic distress.
18) Process and logistics consulting services
When the economy is chugging along prosperously, it is easy for waste and inefficiency to be tolerated in the day-to-day operations of businesses. But when the economic picture darkens, businesses can seldom afford such sloth. For this and other reasons, consultants who claim they can eliminate inefficiencies and cut costs associated with logistics have reaped 3%, 3%, and 4% growth during the 1990, 2001, and 2007 recessions. (This is a key point: any business or person who can help people cut costs is valuable and even more valuable during recessions!)
19) Veterinary services
Remember: our cuddly companions don’t know what the economy is doing, so they can’t eat less – or get hurt less often – when the Dow Jones takes a dive. And naturally, most pet owners aren’t going to let Rover suffer from heartworm just because money is tight. All of this spells relief for veterinary services, who have grown 6%, 4%, and 4% in recent recession years.
20) Security guards and armored car services
The security guard/armored car services industry has grown 3%, 6%, and 3% in recent recesssion years. Why? It’s most likely because shoplifting, vandalism, and other mischief costs businesses even more dearly during recessions than during normal or prosperous times. Most firms are having enough trouble staying afloat without such unnecessary hassles draining even more money from the budget.
21) Elementary and secondary schools
Remember: our compulsory government-run school system is immune from recessions. We are forced via taxation to fund the system and send our children to be taught by it. For this reason, it is hardly surprising that elementary and secondary schools have grown 3%, 6%, and 3% during recession years. Some of this growth no doubt includes private school tuitions as well, because after all, a recesson is no excuse for not educating one’s children!
22) Junior colleges
Recessions serve as a wake-up call to those who lack the skills or credentials to get well-paying jobs. This, in turn, motivates many people who chose not to get an education sooner to get one now. Could this be why junior colleges have grown 8%, 7%, and 7% during the 1990, 2001, and 2007 recessions? It seems as plausible a reason as any.
23) Colleges and universities
More of the same here. Having a two or four-year college degree instantly makes someone more marketable in the job market, which is why college enrollment tends to spike during recessions. Accordingly, colleges and universities have grown 1%, 7%, and 2% during the three most recent ones. An economist would say this represents people taking steps to build their “human capital.”
24) Educational support services
Since the schools have more money to spend during recessions, they are, in turn, able to spread that money around in providing for their own needs. This is partially why educational support services have some of the most robust recession growth rates of any other industry, clocking in at 10% growth during 1990, 11% growth during 2001, and an astounding 20% growth during 2007. As John F. Kennedy would say, “a rising tide lifts all boats.” When education (or any sector) does well, those sectors connected to it tend to benefit by association.
25) Ambulatory health care services
As we have already seen, medical and health-related industries suffer little (and in fact grow) during recessions. Whether it be due to stress-related problems caused by the recession or just the fact that people get sick and injured all the time regardless, ambulatory health care services have grown 6%, 4%, and 4% during the three most recent recessions. Kennedy’s saying clearly applies to the medical and health fields as well!
Stay tuned for part two of this article which names the other 25 industries that grow in spite of recessions!
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This is a cool website to design a professional resume and they even help give ideas for careers during the economic downturn. I see that this could be a really helpful resource of resume templates and ideas to help people find better or different jobs.
This is excellent information. People going back to college need to understand which industries will need them when they get out of school.
The list #3 #4 & #5 are the industries I am involved in so I must agree with the accuracy of this post.
The pet supply and veterinarian industries are not immune to the effects of the recession. People actually do cut back on their pet expenses. They buy less toys, less expensive food, take their pets to the vet less, and either give away, or sometimes abandon their current bed during bad circumstances. People will also not get new pets during difficult financial times.
Financial processing industries have been hit hard in this economy.
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You forgot alcohol and gambling.
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hi, i cant reach the article what “overqualified” really means.
it seems like a broken link.. maybe the quotes in the title?
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This information is great for people who have lost their jobs and looking for another, and for people that would like a heads up in the growing markets. It is nice to know what companies thrive during recessions and what companies to get in to. These top 25 recession-proof industries are a great help to someone in need.
I’m impressed by how much work and thought you have put into this. Most people compile a list of ten and then stop. You went for another forty.
I’ll be linking to your list.
Thanks again.
Cool! excellent information.
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I was searching help with building my online resume, and I stumbled upon this website. The resume tips I found in this post are great! I absolutely agree with this post about recession proof jobs. Certainly, there are some good jobs available still on the market.
I had to close my pet store because everyone goes to the big chain stores where they pay less. A small store can’t do those prices.
Now I need a good resume template to put up for an online resume somewhere.
Its a great blog and it will help people who need resume tips to submit an online resume.
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Really good read, nice to read a good blog at last!
hmm well i dont think so portfolio management is recession proof.
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Well done. This is truly the reasons that make this recession.
But I don’t think we should go that much negative. People should not panic about it, intstead they should make plans to get out of this.
Nice job. I completely agree with you.
I think many professional services such as law, dentistry, medical services, etc are also recession proof. Also, your title says 50 but you only list 25. Where are the rest?
VERY well-considered list…But, it left one “industry” out…
And, that’s the U. S. Military! How various “Administrations” in Washington D. C. utilize the military is not very important to the stability of on-going expenditures of this “industry”.
The money IS largely allocated, and it likely WILL be spent!
I can’t believe that even with proof that the video games industry is recession proof, that it is not on this list. I have come across an article on this site that says that the industry is weathering the current recession with flying colors and lists the reasons why: http://www.thefinestwriter.com/blog/?p=411
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I understood that how many jobs losses and how can we go forward in this world so that is really helps me lot.. it is good to know what are the ways we need to find it and how we have mold ourself in this generation. thanks
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Great stuff.. thanks. Does anyone know the link to part 2 of the article?
1 and 5 were particularly interesting to me. I know a few contractors personally who have been hit hard, and I work for a leading pet supply retailer that is dealing with layoffs, etc. Nice post.
nice posting and thanks for very useful information.
Great posting. Thanks for useful information.
I can see in a poor economy where the medical field would be recession proof, with people getting sick and stressed over unemployment
Great article… very useful..
one reason I can think of for the growth of Residential Contractors service is that people who would want to buy new homes couldn’t afford them during recession and so they better chose to get their old homes repaired.
I am a recruiter in the medical device (i.e. equipment) industry. There is a lot of truth in the stability of the industry. From my vantage point as a sales recruiter, I’ve seen other industries in free fall during the recession. The medical device industry has chugged along quite nicely, thank you. Grateful to be a part of it!
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Where’s part 2?
Many of the top 25 seem to make sense for a short recession that is not too severe but given the current situation – many of the industries listed as “recession proof” have not lived up to the resilience that historical results might suggest.
#1 for example, Residential Trade Contractors are going out of business everywhere! With new housing construction almost non-existent many home builders now agree to remodel. Many remodelers who would only accept large jobs such as additions and major renovations such as kitchen and baths now face more fierce competition from home builders that are slow. The remodelers that only would accept large jobs in the past now accept handyman work adding competitors to the handymen. Many layed off workers strap on a tool belt and call themselves a handyman but lack insurance, licensing and perhaps have criminal backgrounds so can’t do anything else but they crowd the field even further.
All of these dynamics happen while the consumer isn’t buying that new/bigger home, but in theory fixes the old one which is true in a short or shallow recession but in this environment the “brakes are on” for all types of home repairs, improvements – and surely not renovations. The consumer remains scared to death and only calls when a pipe bursts or the roof leaks during a storm! Little if any improvements are being made and only repairs that are emergency are being requested.
I speak the above from first-hand experience as an owner of a home maintenance & repair services company.
This is the worst recession of a lifetime which can’t be accurately be compared to those of 1990, 2001 and 2007.
So, good stuff overall, but reader – please beware!!!
Best you could make changes to the page subject Top 50 Recession-Proof Industries (And What Makes Them Recession-Proof) Part 1 | Resumebear Online Resume to something more specific for your subject you write. I enjoyed the blog post all the same.
State-supported education (K-12, Junior [community] colleges, and universities) are not immune to recession woes — especially in California. Our state has been hit really hard by the economic recession; and consequently people from all levels of education are finding themselves unemployed or underemployed. If it happened in California, it can happen in other states as well.
Hey Kath, well its not very true… the only thing matters much for everyone to grab any opportunity, he/she find on… If its the same for an Indian to picturize, well its lots better in the field of education. Herein India lot of people including Higher Education Student earn their living by tuition business… At every level of Academics a minute business opportunity occur which one should have to grab it. For we Indians if calculated per capital annual income is just 4000 per year and its just equals to 80 Dollars a year… don’t fell narrow minded and keep working…GOD WILL HELP! EVERYONE…
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I think only Indians are thinking and taking it positively…
else everyone here is just questioning the list, that what should be in it or what should not be?
well taking the plus of this list one can easily get what he wants to be in.
later on may be there is something on this list i am sure would be your preferential choice of Recession proof Job…
Just Take its Plus +++
A very interesting article which I have tweeted on Trovit_au and Trovit_za
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http://jobs.trovit.co.za/
Great information that everybody should be aware of in these trying times.