“Graduates from a weak labour market often lead to long-term negative outcomes”. ( Source: NBER)This says that starting your career during an economic downturn significantly increases the chances of getting lower earnings.
The Good news? With strategic plans and wise execution, a graduate degree during a downturn can also pay off in the same way.
According to CCWT, “students who upskill during a recession are 15-20% more likely to secure stable employmentwithin two years of recovery compared to those who do not”.
Riya, a marketing professional, did the same during the 2020 recession:
“She chose to pursue Masters of Business instead of waiting for the right time. By the time, she had gained more skills and the economy had recovered.
With her expanded network, she got a 40% higher pay than before. Her choice to upskill during the downturn boosted her career”.
And this is just a mere example of leveraging skills.
Keep reading to prepare well and hit the ground running when graduation comes!
The Strategic Advantage of Timing
Entering the workforce during a recession could be risky. Studies show that “individuals graduating in weak labor markets earn 9% less in their initial annual earnings compared to those graduating in strong economies”. ( Source: The Digest) And these losses may last for upto ten years.
Delaying workforce entry by pursuing a degree will help you avoid that “bad fit” trap.
Think of it like stepping off a river rather than trying to swim upstream in flood waters – you spend time building a raft rather than getting swept downstream.
Choosing the Right Program
All degrees aren’t equal – especially during economic uncertainty. You should pick a program with more recession-proof sectors, such as Btech in Tech or a Masters of Teaching or Education.
According to advice from Sofi, workers with a master’s degree get paid more than those with a bachelor’s degree.
Also, we should always evaluate accreditation and ROI ( what we will pay vs. what we will get and how early we will be able to recover our money).
Don’t choose a program just to fill your time, choose one that builds skills relevant to the future.
Networking
Your college is not just for coursework and degree. Your professors, alumni, peers and industry partners can help you crack a good job even during recessions.
Treat your professors and cohort as your professional network, not just classmates and instructors.
If the job market is a locked door with fewer keys, your network is the master key ring you build while in school.
Industry Insights
Nearly 90% of employers surveyed by NACE in their job outlook 2025 report said they look for evidence of a candidate’s ability to solve problems – their practical skills.
Financial Prudence
Graduate school during a recession can be financially risky if not managed well. Go through with the pro tips to minimize financial burden:
- Look for programs with assistantships, tuition waivers and sponsorships.
- Use part-time formats to continue working.
- Always maintain an emergency fund – the future is unpredictable.
Your degree should not be just for hobby – it should be improving your employability.
CREDIBLE FACT
Professionals with an active personal brand on LinkedIn are 10x more likely to be contacted by recruiters and 5x more open to growing their network.
Post-Graduation Strategy: Hitting the Ground Running
“Your graduation is not the end – it’s the launch!”
Set both short term goals (first few months after graduation) and long term goals ( one to five years) for better growth.
- Don’t wait for a perfect job that aligns with your comfort, rather add value to a relevant role and use it as a growing path.
- Be ready for new roles – Recovery from the recession may bring some new job roles in the industry.
- Apply strategically, connect with 2-3 alumni and target 10-20 roles every week.
Your university’s career services and alumni network are very important – use them to the best.
Conclusion
A recession is not a stop sign – it’s a test of whether you can play smart. With the right programs, skills, network, and strategy, you can turn a downturn into your launchpad.
And undoubtedly the market will rebound — and when it will, you’ll be the one riding on the wave, not swimming against it.
FAQs
Ans: Programs in technology and healthcare are generally more in demand during a recession.
Ans: The biggest mistake is pursuing any degree solely to pass through a recession.
Ans: While some indicators exist, recessions cannot be predicted accurately in practice.
