The financial situation in our country is not looking good, despite a strong job market. The fate of the future job market hinges on how the government and the private sector handle the inflationary economy plaguing our wallets. Elevated federal interest rates by the Fed affecting borrowing power, union dockworkers, and railway worker contracts involving the supply chain make an upcoming recession a strong possibility. Historically, recessions are awful for the job market.
Many people are not enthusiastic about the economy, and protecting your finances is essential before an official recession is declared. Hopefully, it doesn’t happen, but if it does, here are some ways to look at your situation to help create a plan.
Explore the Job Market
Traditionally unemployment skyrockets during a recession. The mortgage market is already seeing layoffs as hundreds of employees at JPMorgan have been impacted. Fortunately, the current job market is generally strong, and companies are still hiring. Now is the time to capitalize if you’ve been looking for a more viable employer.
Resume Tips
It’s always a good idea to polish the resume before sending it out, especially if you haven’t looked at it in a while. The primary element to consider is that a resume is your first impression with a potential employer. Going back to basics, ensure there are no spelling or grammar errors. Before stepping through the door for an interview, it can say a lot about your attention to detail.
Create a Brand
Instead of writing up an objective at the top of your resume, summarize your value proposition and how you plan to apply it at their company. A brief executive summary of your critical skill sets and examples of successes in your previous roles will bode better while in consideration. Employers aren’t concerned with your objective but are concerned with what you bring to the table.
Create for AI
Applicant tracking systems run by artificial intelligence, or robots or bots, look for specific keywords to find candidates. As the applicant pool gets more extensive, you can put yourself closer to the top of the list by adding the position you’re applying for at the top of your resume. Use identifying keywords from the job description; you’re more likely to get past one of these systems.
The Details Count
Showcasing your value comes in different flavors. The primary goal of a resume is to convince an employer that you’re worthy of an interview. To be persuaded, an employer needs specifics that illustrate the value you will bring to the company. Give details on your quantifiable successes like sales, growth benchmarks, savings, or anything that can give a grounded frame of reference to the impact you bring.
Keep it Relevant
Recruiters receive thousands of resumes per week; some receive that number daily. They don’t have time to read a multiple-page resume with every job you’ve ever held. Keep your resume to one page and only list the jobs that are relevant to the job you’re applying for. List the job, a few sentences, at maximum, that highlight the complex work you’ve done in-role, then use bullet points. Prioritize them in order of importance because the recruiter may not make it past the first one.
Financial Preparation
Whether high inflation continues to rein or a full-blown recession is triggered, now is the time to get your finances in order. There are many surrounding factors related to the current inflationary economy, and it’s important to know what they are and equally vital to get a handle on your current spending habits.
Here are several things to consider before taking action:
Home Financing
The Federal Reserve’s primary goal is to cool down spending in an inflationary environment. Elevated interest rates make borrowing more expensive. The hope is that fewer people spend, eventually lowering prices.
Given the Fed’s interest rate hikes, buying a home or refinancing isn’t the best option. But if you already have one of these in the works, lock in the lowest fixed interest rate you can get as soon as possible.
Emergency Fund
Especially in a struggling economy, it’s essential to have an emergency fund. Should layoffs become the norm, you’ll need some extra cash on hand to get through until another opportunity arises. A general rule of thumb is to set a goal of having several months of living expenses. This task is easier said than done but can be a great safety net.
High-Interest Debt
Credit card balances carried over month to month are a liability during inflation. The best financial move you can make is to settle these debts as soon as possible. If you make minimum payments on these credit cards, you’re likely not touching the principal balance. This creates an endless amount that’s extremely difficult to get from under. Prioritize a plan to remove or reduce these debts significantly.
Financial waters in today’s climate can be complex and outright frightening. Don’t let either get in the way of your financial freedom. If you’re struggling to make a sustainable plan to get your debts settled, contact Advocate Debt Relief. When you’re ready to take action, we’ll be here to help you find success.
