What Degree Is Best During an Economic Recession and Depression?

Economic recessions and depressions can have harmful effects on one’s financial situation.

The chances for another economic downturn in the United States are low but never zero. This is especially true as inflation has run hot. If you’re just starting to pursue higher education or want to shift career paths, you should consider earning a degree that will still be relevant even during an economic downturn. The following three degrees are known to lead toward recession-proof jobs, easing your worries when a recession hits.

What are economic recessions and depressions?

Recession and depression are often used interchangeably. While they both instill financial drought, these terms have different meanings.

There are several ways to define an economic recession. But, according to the National Bureau of Economic Research (NBER), recessions are economic downturns impacting several economic sectors simultaneously and lasting for a year or two. On the other hand, depression is defined as a downturn affecting several countries simultaneously for a very long time.

To clarify their differences, let’s briefly talk about the Great Recession and the Great Depression.

The Great Recession:

• Started in 2007 (December) and concluded in 2009 (June).
• Characterized by a high unemployment rate, falling home sales and prices, a stock market decline, stagnant wages, and a negative GDP.
• Considered a normal part of the economic cycle, with 13 recessions since World War II.

The Great Recession significantly impacted the economy and people’s mental health. However, it wasn’t nearly as bad as the Great Depression.

The Great Depression:

• Lasted from August 1929 to March 1933 but still had lingering effects until the late 1930s.
• Characterized by declining wages, mass layoffs, a 29% decline in GDP, and widespread bank failures, with nearly 25% of the labor force out of work.

3 Best Degrees During An Economic Recession or Depression

1. 1

   Information Technology

   Information Technology (IT) is a top player in offering recession-proof jobs. After all, it is the primary driver of innovation in 21st-century businesses. Plus, an IT degree can offer stable job security.

   According to the Bureau of Labor Statistics (BLS), computer and information technology occupations will outpace the growth of other occupations. This industry is expected to have annual job openings of over 377,500.

   IT has several branches. Some of the most popular areas in IT that may lead to recession-proof careers include:

   • Cyber Security
   • Data Science and Analytics
   • Cloud Computing
   • Network Administration and Infrastructure Management
   • Health Informatics
   • Artificial Intelligence (AI) and Machine Learning
   • E-commerce and Digital Marketing

   The highest job growth in IT occupations goes to cyber security, which is a position that is in-demand by tech and non-tech companies alike. According to Statista, cyber security’s revenue by segment in the US is expected to reach $273.60 billion by 2028.

   Moreover, cyberseek indicated that there are 572,392 job openings in the United States for cyber security professionals. Since recessions and depressions imply financial hardship, there’s a great possibility that more cyber attacks will occur, prompting businesses to hire more cybercriminal defense professionals.

   Even better, a bachelor’s degree in information technology can be earned entirely online. There are even a number of top-ranked accelerated degree programs online in IT that can be completed in 2-3 years.

   The common admission requirements for an online bachelor’s program in information technology include:

   • A high school diploma, GED, or the equivalent
   • SAT or ACT scores
   • Letters of recommendation.

   Most programs don’t require previous IT experience, but student with associate degrees, certificates, or previous job experience may complete this degree more quickly.

   Unlike other career paths, you don’t necessarily need a master’s degree to secure a position in IT. On-the-job experience and industry-specific certificates that will attest to your skill levels are highly valued in this sector.



2. 2

   Education

   Education involves the private and public sectors, which means that this degree can thrive even in the midst of an economic recession or depression. In addition to job security, you’ll also be a great contributor to the future success of young people. The education sector is recession-proof for a number of reasons:

   • There will always be new students in need of instruction
   • Not all parents can or will be able to homeschool their children
   • Even in the worst-case scenario—a government collapse—there will still be a demand for educators in the private sector.

   Education services are broad. There are numerous college majors offered in the field of education:

   • Early Childhood Education
   • Special Education
   • Secondary Education
   • Curriculum and Instruction
   • Educational Technology
   • Higher Education Administration
   • Educational Psychology
   • Art and Music Education
   • Administration and Supervision
   • Language Education

   According to a 2019 study by the Economic Policy Institute, the teacher shortage is large and only getting worse. During a recession, the challenges posed by the teacher shortage become even more pronounced.

   There are a number of excellent online degree programs in education. However, most most of these programs do require on-campus visits and participation in practical teaching experiences. This hybrid model provides prospective teachers with the practical experience and hands-on abilities they need to teach effectively while offering online learning flexibility.

3. 3

   Health Care

   The healthcare sector is one of the most important industries worldwide, providing essential services to people of all ages. Compared to other industry sectors, healthcare is less vulnerable to business cycles, contributing to its overall stability and resilience during economic downturns.

   In the United States alone, over 14.7 million people are employed in the healthcare industry, the majority of which are registered nurses. And according to the Bureau of Labor Statistics, that number is only expected to continue to increase, with a projected additional 1.8 million job openings each year. The healthcare sector is also experiencing a severe labor shortage.

   Both the projected job openings and labor shortages mean that those graduating with a degree in healthcare will have significant job prospects and are less likely to be unemployed during economic recessions.

   The higher-paying positions in the medical field, such as physicians and surgeons, require years of internship, college, and training. Other common job titles in healthcare that are in high demand include:

   • Patient care technicians
   • Certified nursing assistants
   • Medical technologists
   • Laboratory technicians

   Fortunately, the healthcare industry is vast, encompassing a wide range of occupations that go beyond clinical work. These responsibilities include critical administrative and support tasks essential to the industry’s overall operation and efficiency. For example, healthcare administration and healthcare management positions are essential in keeping healthcare facilities functioning.

   Due to the intricacies of clinical work, most bachelor’s degrees in healthcare require on-campus learning. Although some healthcare majors in administration and management offer online learning, you might still be required to attend classes on campus.

Profiting from an Economic Recession

During a recession, not all businesses experience the same level of difficulty. Some industries, including health care and education, thrive more than others. These industries also possess more recession-proof jobs than others. Businesses often benefit from increased demand due to reduced substitute products or cheaper alternatives to luxuries or big-ticket purchases.

One of the best ways to profit from a depression while pursuing a degree in one of the recession-proof college majors is by investing. Recessions bring economic uncertainty, but this might be a great time for students to educate themselves on making wise investment choices.

Here are some of the best investments for students during a recession:

Fixed-Income and Dividend-Yielding Investments

During recessions, investors often choose fixed-income investments like bonds or dividend-yielding stocks due to their routine cash payments. Dividend stocks can provide you with a stable cash flow. Investing in a company with a solid track record of paying and increasing dividends can become a potential cash flow stream.

Exchange-Traded Funds (ETF’s) and index funds, while traded differently, can lower volatility during an economic downturn because the risk is shared across multiple companies or industries.

Consumer Staples

Investing in companies that offer consumer staples, such as food, pharmaceutical drugs, hygiene products, and medical supplies, often remain resilient even during recessions. During recent recessions, companies like Johnson & Johnson, Procter & Gamble, Conagra, and Walmart outperformed the S&P 500.

The good news for students is that there are a number of stock buying companies that allow you to begin buying and trading stock with a very small investment. Stock trading apps like Robinhood, Webull, and Acorns offer free stock trading.

Students Submitted Questions on the Best Degrees During An Economic Recession and Depression

Sam asks, “What college degrees are recession-proof?”

Dr. James Barham’s answer: Securing a recession-proof job will help you minimize financial instability during challenging economic times. The degrees that can guarantee you work during a recession include information technology, education, and health care.

Doug asks, “Should I pursue a degree and career in an already stable industry or an emerging industry in a depression or recession?”

Dr. Jed Macosko’s answer: It depends. Pursuing a path in either industry during a bad economy comes with pros and cons.

Pros and cons of an already stable industry:

• It may offer job security but may resist change, making career advancement difficult.
• It may be less prone to economic downturns but may be better positioned for recovery and future success.

Pros and cons of an emerging industry:

• Emerging industries may offer growth and innovation but are bound to face multiple challenges.
• It may not generate sufficient cash flow.

It’s important to consider certain factors, such as the specific dynamics of each industry. Recessions and depressions will not last forever; you must also consider short-term stability and long-term growth potential.

Jane asks, “What certifications and skills improve my employability during a depression or recession?”

Dr. James Barham’s answer: You need to stay on top of technological advancements during a recession or depression. DevOps and Agile Development are two certifications and skills you must know about.