The latest business news can make your head spin. Whether it’s a diving stock market, inflation figures not seen in 40 years, waves of layoffs and talk of high-profile job cuts, or dire predictions for 2023, there’s no shortage of worrisome headlines.
Economic trends can affect your professional path, not just your portfolio. Regardless of whether you are a military spouse, transitioning servicemember, or a veteran already established in your civilian career, it’s worth considering what these indicators may mean for you.
Struggles Starting Out
Are you a job seeker? Although fluctuations in the stock market are common, the market tends to be a leading indicator while the job market is a lagging indicator. If the value of stocks and profits continue to decline, companies and organizations will need to closely control their personnel costs.
This could mean hiring freezes and layoffs, making it harder for transitioning servicemembers and military spouses contemplating workforce reentry to get their foot in the door and secure stable employment.
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Making an Impact
Already established in your civilian career? Don’t think you are immune. The layoffs sweeping across American businesses from Carvana and Netflix to Peloton and Wells Fargo could potentially impact you as they expand to other industries and sectors.
Given it generally takes eight months for a newly hired employee to reach full productivity, it is imperative you quickly demonstrate your worth and intrinsic value to make money or save them time to increase their efficiency and effectiveness and be a contributor to the company’s bottom line. Those who adapt quickly are more likely to stay employed when a company confronts a business downturn.
Seeking career advancement? A large stock market drop and recession concerns can be particularly hard on people who are nearing retirement. In fact, they may decide to postpone retirement so they can avoid tapping into their retirement accounts during an economic downturn.
This could create challenges for upward mobility within companies and organizations, with incumbent senior staff remaining in place as they wait for market conditions and the economy to rebound.
Planning for Retirement
And maybe that person contemplating staying in the position is you! The average 401(k) balance fell 7% during the first quarter of 2022, which could leave many workers seeking to push back their departure date.
Your financial adviser will be a critical part of these end-of-career decisions. Don’t have one? Consider this MOAA primer on selecting the perfect professional.
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Whether embarking upon your civilian career or contemplating retirement, MOAA is here to offer trusted advice to help you make sound decisions along your career and life journey.
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