You, Your Career and the Economy

By and large you are responsible for your life and career success. However, some factors, such as the economy, are beyond your control.

Fierce Competition

According to U.S. News, a difficult economy can increase the competition for any particular position in several ways. This increased competition means you have a decreased chance of procuring a job in the first place. More applicants are applying for the same position, and employers can’t hire as many people. Even when you have superior credentials, another person might be just a little bit better and get the job as a result, leaving you with no position at the company.

Price of Products and Services

Whether you own a small business or your an employee at a company that directly sells products and services to others, your job as a whole could suffer. Businesses tend to lose money in economic downturns, so individual people do as well. Consumers have less money to spend on items, which means that your business will likely either have to lower its prices or risk not making any sales until the economy turns around again.

Layoffs and Closures

When the economy is in a rough state, many businesses decide to make cuts before they lose any more profits. In any words, they are trying to save their businesses by cutting the number of salaries that they need to pay. People who have been at the job for the shortest amount of time are often the first ones to go. In some cases, entire businesses may have to close down because they just do not have the money to stay open anymore.

Need and Want

Certain types of businesses may struggle more than others during tough times in the economy. For example, companies that offer true necessities may find that although they have to reduce their prices, they can still stay open. On the other hand, companies that offer luxury services aimed toward the middle class may find that their target audience members no longer have the extra funds to spare. The business may need to alter its target audience but risk losing current customers when the economy changes.

The state of the economy can have a tremendous role in your ability to create a successful life and career. You can learn more about the economy and its effect on your life by talking to someone who has their masters degree in financial economics. Understanding how the economy works and analyzing trends within your own business can help you to stay open and thriving in tough times.