Economic activities of a country slow down when recession takes place. Everything falls down during recession starting from production, employment, household income, investment spending, capacity utilization to business profits. Above all recession affects the job sector.

When a country encounters economic depression the companies go for cost cutting. Since people stop spending money and they don’t buy enough products so that the company can earn profit the companies try to lower their budget to avoid loss. The easiest way of doing so is removing the positions they no longer need. Few jobs are available in the market when a country undergoes recession.

The US recession starts when people lost their homes. As a result the investors lost money. This in turn leads to sink in the stock market. The situation gets even worse when people stop spending money. Now the scenario is quite clear. When customers stop buying products or services all the businesses get affected.

Let me give an example to make it clear. You have decided not to spend money on a jewelry which otherwise you have bought. Since you don’t buy that jewelry everybody is at loss starting from the manufacturer to the dealer. In fact the administrative staff as well as the company delivering raw material also loses money.

Now those businesses have to make up their loss. How will they do it? Obviously they will cut down the man power because they will reduce production and will no longer need as much man power as they used to utilize. Therefore job loss is the most common scenario during recession.

Though recession affects all the job sectors some of the below mentioned sectors are mostly effected.

1) Factory jobs are mostly at stake and manufacturers lose their job because the companies reduce their productions.
2) People working in service sectors like hotels, restaurants, call centers lose their job because people no longer need their service.
3) People working at the back office are also at risk since a company will prefer to hire a freelancer instead of retaining a full time business executive.
4) People stop purchasing and this mostly affects the sales persons, telemarketers, real estate agents etc.

In fact there is no job sector that can be called safe during recession. Companies cut man power as they can not offer salary or other advantages to the individuals. However they can again hire people as the economy strengthens.