Business and industry leaders will be breathing a sigh of relief this week, following the news that the British government has moved to delay Brexit by at least another six months, with the possibility of a further extension or even revocation further down the line looking fairly likely.
Most importantly, an economically disastrous ‘No Deal Brexit’ appears to have been permanently taken off the table, although it may re-emerge as a possibility come October. If this was the case, the International Monetary Fund has warned that the UK will slip into a recession lasting a “minimum of two years” by 2020.
Even if No Deal is avoided, sluggish Eurozone growth and a growing tariff war between Europe and the US may well drag the UK economy into contraction. While this is terrible news for some businesses, such as manufacturing, for others there is little to worry about.
If you’re wondering how to safeguard your future, read on to find out which UK industries are the most recession-proof.
Food & beverage
As with all the entrants on this list, a little clarification is required. The food and beverage industry as a whole is not protected from the threat of recession; restaurants and hospitality businesses are actually among the most vulnerable. However, consumer essentials such as groceries, as well as recreational F&B goods such as alcohol, always do well in a recession. It’s for this reason that major consumer goods companies such as Unilever and P&G barely even noticed the 2008 crash.
This one probably doesn’t come as a surprise, given the immense popularity of this form of entertainment. Whilst other entertainment sectors such as cinemas and sports venues suffer in recessions, gambling providers usually see profits continue to grow. This is, in part, due to the move into online gambling, with platforms such as Paddy Power Casino being able to offer very cheap entertainment in the form of free slots and sign-up bonuses. This digitisation of the industry has meant that casinos are safer than ever.
Profits from companies which provide healthcare services, such as drugs manufacturers and care homes for the elderly, have grown almost completely unimpeded over the past decade. A recession has zero impact on people’s healthcare needs, whilst the innovative organizations creating breakthroughs can always rely on a steady stream of government funding. It is for these reasons that the healthcare industry has little to worry about when it comes to recession.
It has been said that even in a time of economic contraction, people still strive to improve their life chances. This is why revenues and employment figures within the British education sector have remained stable throughout the economic downturns of the past decades. These days, private tutoring is one of the fastest-growing sectors of the education industry, with tutor agencies such as Bright Young Things reporting record levels of interest and profits.
If you’re looking for a safe port in the next economic storm, these are the industries to work in. Better start re-working your CV.